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Why do I need permanent life insurance?

Posted September 18, 2013 in Advice Column, Ankeny

Three reasons why you should have permanent life insurance are:
• To protect your loved ones. People buy life insurance to provide financial security in case they die too soon or live too long.
•    To create a financial foundation. Every successful financial plan needs a solid foundation, and that foundation includes life insurance.
•    To preserve your estate. People who have successful careers and investments will need to transfer their estates to their heirs upon death. Life insurance’s death benefit can help pay estate taxes.

Life insurance provides an immediate fund when you die. In your absence, your family may need to rely on life insurance proceeds for a time to maintain their lifestyle. Permanent life insurance provides a death benefit as long as you pay premiums.

The cash value in most permanent life insurance contracts is a sum that increases over the years on a tax-deferred basis (under current tax law) subject to the terms of the contract. This cash value is available to the insured when needed.

Many people use the cash value to help supplement their retirement income in the future, to help pay for a child’s college education or to provide needed funds in an emergency.

Charitable giving
Do you enjoy the feeling of helping your favorite charity? If so, you may be happy to hear that you can continue to give even after you’re gone. Life insurance makes it easy.

Why use life insurance to make a charitable contribution?
•    Your gift is deductible for federal estate and gift taxes.
•    You can create a sizable gift at a fraction of the cost.
•    Your premium payment can be income tax deductible if you itemize.
•    You can give to the charity or nonprofit organization of your choice.
•    Your gift is not probated at your death.

With proper planning, you can ensure that your gift of life insurance will have a substantial impact on your charity’s future. That’s something to feel good about today.

*A registered representative. Securities offered through MWA Financial Services Inc., a wholly owned subsidiary of Modern Woodmen of America, 1701 1st Avenue, Rock Island, IL 61201, 309-558-3100. Member: FINRA, SIPC.

Information provided by Modern Woodmen of America for Stoy Hall FIC, 201 S.E. Shurfine Drive, Suite 1, Ankeny, 515-289-4060,

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