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GIFT OF INSURANCE
Michael Vitale 104 Interchange Plaza Suite 102 Monroe Township, NJ 08831 Cell: 201.306.5988 Office: 609.655.3066 x255 Fax: 609 .655.4959 Email: michaelvitale.insurance@gmail.com
Valentine’s Day is February 14th...a day when people shower those they love with flowers, chocolates, and gifts. But what about a gift that is invaluable? Life Insurance is certainly not as shiny as a diamond bracelet, but may be much more valuable for you and your loved ones. Many people ask how life insurance can be considered a gift. It’s neither an exciting topic, nor a flashy purchase sealed with a glittery bow, but it is extremely significant. Human nature makes us all somewhat hesitant to discuss life insurance, because it is paralleled to a discussion about death. It forces us to deal with the consideration that someone we love may eventually pass. Although we cannot control that aspect of life, we ARE able to plan and manage the possible financial repercussions of losing a loved one, especially one who is a main source of income in a family. To that effect, there are various life insurance product lines offered to best secure your family and loved ones for the future. Term Life Insurance is the most basic and straight-forward form of life insurance. It is considered a “pure”
ALL AROUND OLD BRIDGE
product because it does not accrue/ build/develop any sort of cash value. It can be an affordable way to give your family peace of mind that, if something should happen to you, the money will be there to help that day, as well as in the future. Term policies can be tailored to provide a specific benefit, for a specified period of time. Universal Life Insurance addresses a wide variety of financial needs. First and foremost, it provides death benefit protection. Additionally, it provides flexibility regarding the payment of premiums, ways to accumulate cash, and death benefit flexibility. Wouldn’t it be nice to be able to adjust the amount you are paying, based on your current life situation? Of course, there are always minimum and maximum payment guidelines within which the policies must function. In a universal life contract there are those options to adjust the amount within the proposed guidelines. Optional Guarantees are also available as aspects of most Universal Life policies. These provide guaranteed premiums that do not increase with age, guaranteed death benefit that will remain steady as the years mount, and
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the ability to choose your guaranteed coverage period. These optional guarantees make Universal Life contracts customizable for each individual’s needs and goals. For example, reducing the guaranteed coverage period can usually reduce the cost of the insurance. It could still cover an individual for a longer period of time than a 30-year term contract, while also providing a cash value. Building cash value may be the most alluring feature of Universal Life Insurance - the cash value grows tax-deferred. Some policies offer a wash-loan feature, allowing the insured to take interest-free loans from the cash value, without creating a taxable event. For example, you may use the funds to
satisfy a college tuition, a 0% interest self-held car loan, or your mortgage. I understand what you are probably thinking right now - this is WAY too much information to handle. I agree. This is why there are local licensed professionals who are equipped to explain everything to you, tailor policies to best fit YOUR needs, and assist you in making these important decisions. Together, you and your agent will develop a financial plan for you and your loved ones. A Life Insurance policy may not be as sweet as chocolate covered strawberries, and it certainly doesn’t sparkle on your neck, but it will definitely provide you with much more value - peace of mind for years to come.