Why do I need life insurance?
The death of a spouse or single parent often creates pain and suffering for survivors. All too often, hardships are increased with the financial burden that could have been reduced or eliminated with enough life insurance.
Sadly, 47 percent of all Americans – at least 122 million people – have NO life insurance coverage at all. This life insurance need was at one time estimated to be nearly $5 trillion and the number of uninsured individuals and households has only grown.1
1Michael White’s bank Insurance & Investment Fee Income Report, 2001
How much life insurance do I need?
The answer to this question depends on your situation. As you assess your current life insurance needs, think about the following reasons to own life insurance:
Major Expenses – One in five people who lose a spouse to terminal illness pay $10,000 or more in out of pocket medical expenses.2
Outstanding Debts – Rather than leave debts to your surviving spouse and family, you should have enough life insurance to pay credit card balances, medical bills, legal fees, and other debts.
Burial and Funeral Costs – The average funeral expense is estimated to be $7,323.3
2Survivor Study, LIMRA international, 1999
Are life insurance death benefits taxable?
Life insurance death benefits received by a beneficiary are not subject to income tax according to current federal income tax laws. Consult your tax advisor.
Are there any exclusions?
The death benefit will not be paid if the insured’s death results from suicide, while sane or insane within two years* from the date of issue. Instead, the sum of premiums paid less the amount of any indebtedness on the date of death will be returned to the beneficiary. In addition, any increase in death benefit will not be paid if the insured’s death results from suicide, while same or insane, within two years* of the date of issue for the increase in coverage. Instead, the benefit will be the previous death benefit amount plus the sum of the premiums paid on the increase in coverage.
*One year in Colorado and North Dakota; in Missouri, benefits will be paid for all causes of death unless evidence shows suicide was intended at the time the policy was purchased. In North Dakota, the requirement of sane or insane does not apply and in Washington, this exclusion does not apply.
How is your information protected?
We restrict access to your information to those associates who have a business need to know that information in order to provide products or services to you or to maintain your accounts. These associates are governed by a strict code of conduct and are required to maintain the confidentiality of customer information. We also maintain physical, electronic and procedural safeguards to protect your information.