Buying life insurance is not like any other purchase you will make.

Life insurance is an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The cash provided by life insurance also can help ensure that dependents are not burdened with significant debt upon the death of a wage earner. Life insurance proceeds may well mean dependents will not have to sell assets to pay outstanding bills or taxes. An important feature of life insurance is that no income tax is payable on proceeds paid to beneficiaries. The death benefit of a life policy owned by a C corporation may be included in the calculation of the alternative minimum tax.

Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, one rule of thumb used is buy life insurance that is equal to five to seven times annual gross income.

Choosing a life insurance product is an important decision, but it often can be complicated. As with any other major purchase, it is important that needs and option be understood.

The main types of life insurance available are term and permanent.

Term insurance provides protection for a specified period of time.

Permanent insurance provides lifelong protection.

Contact us for a complete look at the options