In our uncertain climate, it’s unsurprising that when American investors are thinking about their financial strategy, that the topic of life insurance comes up.
For some, it’s always been front of mind. For younger investors, it may be a new consideration. Either way, it’s in many people’s thoughts, and that’s not unusual when the economy encounters turbulence. In May 2020, life insurance applications shot up 5.2% from the previous year.1
The good news for anyone looking to add life insurance coverage or make changes to their existing coverage is that making those changes is often just the matter of a conversation with your trusted insurance professional and a few forms.
Keep in mind that several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased.
It’s also worth noting that life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications.
You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
1. FinancialPlanning.com, June 17, 2020
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
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