Insurance protection Life insurance
Life insurance helps protect your loved ones when you no longer can. But there are other potential benefits as well.
Protection focused on your financial goals
The primary reason people choose to purchase life insurance is to replace future income that is lost in the event of an individual's premature death. Life insurance offers protection at its core, but it can do so much more. For example, you can use proceeds from life insurance for:
- Paying off a mortgage
- Funding education
- Paying estate taxes
- Transitioning your business
Our integrated approach means we look at your entire financial picture to create a financial plan with the appropriate protection that is focused on your unique goals.
Whether you require relatively low-cost coverage for a set period of time, coverage that does not expire or help with complex family and business needs, we have a variety of options for you.
Types of life insurance
Term life insurance. Life insurance coverage that lasts for a set period of time – typically 10 years or more – is called term life insurance.
Permanent life insurance. Whole life, universal life and variable universal life are types of permanent life insurance coverage that do not expire.
Work with a financial advisor
Conducting a capital needs analysis could help you prevent economic loss to your family. A financial advisor will help you assess your life insurance needs by considering your full financial picture.
Meeting complex family and business needs
While providing for the financial wellbeing of a family is the most common benefit of life insurance, policies can serve other purposes as well.
Special provisions
Some policies can provide for children with special needs, or help maintain property or a business after death.
Tax planning
Policy proceeds are generally disbursed free of income tax and estate taxes. Plus, when the insurance is in force, earnings related to cash value in the policy accumulate on a tax-deferred basis.
Estate planning
Death benefit proceeds can help pay estate taxes and get funds directly to heirs and charities. Since proceeds are not typically subject to probate, life insurance can enable smooth transitions of assets.
Business succession
Business owners purchase policies to ensure their business continues if one owner or key employee dies.
Leveraging life insurance in your financial plan
If you are not using insurance as part of your financial strategy, you may be missing a great opportunity to maintain control of your lifestyle and assets, even when the unexpected happens. Here are some examples:
Distributing risk. You might gain leverage by re-distributing some of your risk to an insurance company.
Premium financing. You might finance insurance premiums to protect your liquidity or cash flow. Learn more about insurance premium financing from our affiliate U.S. Bank.
Tax-advantaged retirement savings. You might gain tax-deferred growth and supplemental retirement income. Unlike retirement assets, life insurance may not have vesting requirements, strict contribution limits or rigid withdrawal penalties. Cash withdrawals may be free of income taxes.
Insurance topics
Insights from our experts
Types of life insurance
Understand the differences between term life, whole life, universal life and variable universal life.
Why is insurance important in financial planning?
Just like your financial goals, insurance policies are as unique as you are.
How much life insurance do I need?
Life insurance can offer financial coverage and security to your loved ones, but it can be hard to know how much you need to purchase.