Life insurance isn’t for you — it’s for those you leave behind.
The key to life insurance
When it comes to selecting a life insurance product for your unique financial circumstances, you’ve come to the right place in Blackburn Financial Group.
Life insurance is commonly misunderstood. Many people understand how it can provide greater confidence for both the policyholder and the policy’s beneficiaries, but the benefits don’t stop there. In the right hands, life insurance can be a powerful and effective financial planning tool thanks to the variety of products and benefits available to you.
So what can life insurance do?
There are two basic kinds of life insurance policies: Term insurance and permanent (or cash value) insurance. Your Blackburn Financial team can help you determine the policy or policies that best fit in your overall financial plan. Depending on the product(s) you choose, life insurance can:
- Provide a death benefit to help preserve dependents’ standard of living
- Provide for college expenses
- Provide alternatives to help pay for long-term care expenses
- Provide supplemental retirement income through the use of policy loans with tax-deferred growth and tax-free income
- Provide funds for a business transfer of ownership
- Provide business partner protection
At Blackburn Financial Group, you will receive a life insurance policy review – a very important step in helping to ensure your future financial well-being. There are a number of variables, both in your always-changing life and in the life insurance policies themselves, that can make a policy become a less-than-ideal fit for your needs. You deserve to know how things stand and what your options are. We’ll begin with a few simple questions:
Is the policy still suitable for you?
Is the death benefit appropriate?
Is the premium appropriate?
Is the policy properly owned?
Are beneficiaries properly named?
What is the financial condition of the policy today?
Have any loans been taken?
Are premiums plus loan interest being paid?
Is the policy convertible and to what age?
Are there still surrender charges in the policy if exchanged?
How is the policy likely to perform in the future?
How is the policy performing on current assumptions?
Is the policy expected to lapse prior to the insured’s wishes?
Is a change in the benefit to be paid?
With decades of experience in life insurance, Blackburn Financial Group can provide the guidance you need.
Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse, or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change, and you should consult a tax professional. Policy loans are not usually subject to income tax unless the policy is classified as a modified endowment contract (MEC) under IRC Section 7702A. However, withdrawals or partial surrenders from a non-MEC policy are subject to income tax to the extent that the amount distributed exceeds the owner’s cost basis in the policy. Loans, withdrawals or partial surrenders from an MEC policy are subject to income tax to the extent of any gains in the policy, and if the payment occurs prior to age 59 ½, a 10 percent federal additional tax may apply.
Living benefits are available in the form of accelerated death benefits. These benefits are NOT a replacement for long-term care (LTC) insurance. Living benefits and LTC riders are not available on all index universal life products and may not be available in all states. Addition of an accelerated death benefit or LTC rider may require an additional fee. Accelerated death benefits and LTC riders are subject to eligibility requirements.
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