« Back Why People Buy Life Insurance

People Buy Life Insurance:

  • For the Death Benefit:
    • To replace earning power at death
    • To pay for cash needs that arise at death
  • As a Disciplined Savings Program*:
    • To help pay for educational costs
    • To supplement retirement income
    • To take advantage of business opportunities
    • For financial emergencies
  • Because of the Risk of Waiting:
    • Insurability may be impaired or lost
    • Premiums are lower now than they will be at a higher age
    • To begin building cash values that may be used in the future for collateral
  • For the Tax Advantages:
    • Death proceeds are received free of income tax
    • Cash value accumulations are tax deferred
    • Cash value loans or withdrawals* are free of tax, as long as the policy stays in force
    • Accelerated death benefits are received free of income tax
  • In Recognition of Personal Responsibility to:
    • Family
    • Banker
    • Mortgage company
  • For the Flexibility:
    • Benefits may be available regardless of whether the policyowner lives, quits, dies or becomes disabled
    • Life insurance is portable; benefits are not lost due to job changes

* Withdrawals and loans will reduce the policy’s death benefit and cash value available for use.