In many families, at least one adult purchases a life insurance policy. Most often this is to provide financial security for the surviving members in the event of a death, but some people may not realize there are other policies that may offer different benefits. The insurance experts at Tri-Star Insurance in San Diego want to share a few of the advantages you can gain.
Death Income Protection
First and foremost, life insurance serves as stable source of income for your family if you should die. Your policy’s face value should be roughly equivalent to your salary for however many years of work you have left plus the salary for 10 more years (e.g. a 45-year-old making $50,000 a year and planning to retire at 65 should have a face value of $1.5 million if he or she is simply looking for income protection).
Work Income Protection
Life insurance can also serve as an income protector while you are still alive. By adding a disability rider to your policy, you may be able to opt for extra insurance that pays you a salary if you are out of work due to injury or disability for a period of time specified in the contract.
Cash Value Accumulation
Many permanent life insurance policies allow you to accumulate cash value that can be drawn upon as loans or surrendered if you encounter tough times. This allows you maneuverability when it comes to making business decisions, and it can also serve as an investment vehicle.
Having whole life insurance can, to some degree, help you shelter some of your income from taxes. If you are spending more than 10 percent of your income per year on insurance premiums, you may be able to deduct the amount you spend on premiums over that percentage. With certain limitations, you can also build cash value with that extra money while avoiding some of the tax burden.
If you’re on the fence about securing life insurance, call American Tri-Star to discover additional reasons why one of these policies might be right for you and your family. We are also a leading provider of auto, motorcycle, homeowners, and health insurance in San Diego. Call 619-272-2100 today to speak with one of our knowledgeable representatives and to receive a free quote.