1530 E. Williams Field Rd #201 Gilbert, AZ 85295
Understand Life Insurance – Marathon Financial Group LLC
Life Insurance
Life is never predictable and though we might not tell what life will bring into our lives, preparation is always possible. One of the best methods to keep our families economically safe at the time of death that occurs due to unpredictable factors is life insurance. Life insurance comes with a wealth of options. The abundance of choices creates a formidable task when we have to make the correct choice between the right type of life insurance cover. We aim to ease this critical decision-making process at Marathon Financial Group LLC.
Here, this blog will guide you through the basics of life insurance: what it is, how it works, the varying types available, and which one is perfect for you.
What Is Life Insurance?
Life insurance is a kind of contract between an individual, called a policyholder, and an insurance company. In this contract, the insurer agrees to pay a specified sum of money when the policyholder dies, in exchange for monthly or yearly premiums paid by him or her to the insurance company. This sum of money, called the death benefit, can act as a financial cushion for loved ones to help them cover such expenses as funeral costs, debts, and even future living expenses.
Life insurances mean, in simple terms, you feel safe and secure that your loved ones will be taken care of if something happens to you.
Why Do I Need Life Insurance?
Provide Financial Protection for Loved Ones
Life insurance can also ease the economic stress that a family might face when a breadwinner dies. It enables you to continue your family’s lifestyle, level out their costs, and get closer to reaching their goals even as you’re no longer here.
Debt and Mortgages Clear-out
You can pay off debt and mortgages with the sum that life insurances will pay out upon death to free them of these financial burdens in your family.
Estate Planning and Legacy
Many people use life insurance as a strategic tool in estate planning. It can enable you to leave a tax-free inheritance or make a charitable donation in your name, allowing your legacy to continue after you’re gone.
Life insurances policies vary, and you can only make the right choice based on your unique needs, budget, and long-term goals.
Here is a breakdown of the main types
1. Term Life Insurance
Term life is the most popular coverage because it is inexpensive and easy to purchase. It covers the individual for a period, usually 10, 20, or 30 years. If the policyholder dies during the term, then the death benefit goes to the beneficiaries. But if it ends, then there is no payout for the policyholder.
Advantages
- Affordable and simple to buy. Suitable for those requiring short-term protection (e.g. young families).
- Life-long insurance
- Builds cash value, which may be accessed through loans or withdrawals.
- Whole life insurance is one of the permanent types of life insurances, which gives coverage until the policyholder’s whole life, depending on paid premiums. Apart from the death benefit, the whole life insurances policy covers a cash value component that grows overtime on a tax-deferred basis.
2. Universal Life Insurance
Universal life insurance is a permanent policy but more flexible than whole life. In this coverage, the premium and death benefit can be adjusted according to one’s needs at different stages of life, within limits. Like all life, universal life has cash value that can be invested in various accounts.
Advantages
- Variable premiums and benefits
- Cash values accrue
3. Variable Life Insurance
Variable life insurances is a type of permanent life insurance in which the policyholder has the option to invest the cash value into various types of investments such as stocks, bonds, and mutual funds. Thus, this means that cash value and death benefit can rise with those investments but may also go down with a market decline.
Advantages
- May grow extremely high through investment
- Lifetime coverage with flexible premium
Selecting the Best Life Insurance Policy
Selecting the best life insurance policy depends on your age, your financial conditions, your family’s needs, or long-term goals. Here are the key considerations:
Evaluate Your Needs End
Think about how much provision for your family you would need if you were not there. Consider debts, living costs, future education and other needs for children and any estate planning objectives.
Work Out Your Budget
Premiums of life insurance vary drastically based on the type and coverage amount. Term life insurances is usually the cheapest. Permanent insurance, such as whole or universal life, is much more expensive. Determine what you can comfortably pay. It is very important that your payments remain consistent.
Policy Duration
If you only need insurance for a period of your life, say while your kids are young or you’re paying off a mortgage, a term life policy is probably what you’ll want. If you want insurance that lasts a lifetime, a permanent life policy is probably the better deal.
Cash Value Options
Permanent policies have a cash value that would be beneficial for long-term wealth building and financial flexibility. But if one is only seeking protection and a simple death benefit, term life will do the trick.
Common Life Insurance Misconceptions
Many myths govern life insurance that might make a person ignore this insurance or pick the wrong policy. Let’s debunk a few of the common ones:
Myth 1: "I'm Young and Healthy; I Don't Need Life Insurance"
This is one point, whereby younger persons go fewer times to seek services from a doctor but can buy a life policy cheaper, for premiums in many cases tend to decrease by age. The early someone buys insurance, the higher its chances to stabilise relatively low prices during all periods of life.
Some people overestimate the price of life insurance. Term life is very affordable these days, particularly if bought young. Marathon Financial Group LLC can help you find a policy that’s in your budget.
Myth 2: “Life Insurance is Too Expensive”
Many people overestimate the cost of life insurance. Term life insurance, in particular, can be quite affordable, especially when purchased at a younger age. Marathon Financial Group LLC can help you find a policy that fits your budget.
Myth 3: "My Employer's Coverage is Sufficient"
While, employer-provided life insurances is an excellent benefit, it generally only goes so far. Second, employer policies rarely travel with you if you have a change in jobs. A personal policy affords you much greater security and flexibility.
Marathon Financial Group LLC Can Assist You With This
Marathon Financial Group LLC can guide you through life insurance options. Every client is different, and we work to give each of you recommendations that suit your circumstances and goals. Our agents take the time to explain all the details, address concerns, and help you find the best policy to protect your loved ones’ financial future.
Why Choose Us?
- Expertise: Our staff is composed of licensed professionals with several years of experience in the life insurance industry.
- Transparency: We believe all information should be fair, unbiased, and perfectly understandable to you.
- Personalised Solutions: We are happy to tail our recommendation according to your needs and preferences and financial situation.
- Customer-Centred Approach: You are not another client but a valuable partner in a long-term relationship based on the safety of your family at Marathon Financial Group LLC.
Probably one of the most important investments that you can make for your family’s future is a life insurance policy. Such an investment will not only give you peace of mind but also financial security and ensure that your loved ones are protected regardless of the life events that might arise. Marathon Financial Group LLC is here to guide you in making the right choice and finding the appropriate life insurances solution for your particular situation.
Contact us today to learn how we can help you plan your family’s future. Marathon Financial Group LLC: a trusted partner in securing what matters most.
Conclusion
In summary, Marathon Financial Group LLC is dedicated to providing comprehensive financial planning and wealth management services tailored to meet the unique needs of each client. We understand that achieving financial goals is a marathon, not a sprint, which is why we prioritise long-term strategies over short-term gains. Our team of seasoned advisors brings years of experience in investment management, retirement planning, tax strategies, and estate planning to the table, working diligently to help you build, grow, and protect your wealth.
At Marathon Financial Group, we take a holistic approach to financial planning, considering all aspects of your financial life to develop a plan that supports your objectives. We are committed to transparency, integrity, and personalised service, and we pride ourselves on building lasting relationships with our clients. Whether you are a young professional starting to save, a business owner seeking tax-efficient strategies, or a retiree looking to preserve your legacy, our team has the expertise to guide you every step of the way.
Also, our goal is to be more than just financial advisors; we strive to be trusted partners who help you navigate the complexities of financial planning. So, with Marathon Financial Group LLC, you’re equipped to reach your financial finish line confidently.
Quick Links
Newsletter
Subscribe our newsletter to get our latest update & news.
(480) 869 0689
Call to Our Experts