Helping you navigate through life...


Q:  What is life insurance and why do I need it?

A:  A death in the family is not only emotionally devastating, it can also take a tremendous toll on the future financial security of a family. Suddenly, without the deceased’s income, paying the mortgage or providing for a child’s college education may become much more difficult.  

Those who buy life insurance do so to help ensure their loved ones are taken care of financially. Life insurance is a promise by an insurance company to pay those who depend on you a sum of money upon your death. In return, you make periodic payments called premiums. Premiums can be based on factors such as age, gender, medical history and the dollar amount of the life insurance you purchase.

In the event of your passing, life insurance provides money directly to the individuals you select, your beneficiaries, who can use the money as they see fit, including:

Replacing lost income
Covering basic living expenses
Paying household debts, estate taxes and funeral expenses
Funding a child’s education
Supplementing retirement savings


Q:  How can life insurance be more affordable?

A: To keep your premiums as affordable as possible and save money in the long run:

Buy it now. Premiums for the same coverage generally increase the older you become. And the longer you wait, the more you risk developing a health condition that could increase your premium further, or make you uninsurable.

If you want permanent life but you’re on a budget, consider some term for now. You can save money initially by buying some term life in combination with permanent life. Then later, if your budget increases, consider converting the term policy to permanent life.


Q:  What are the tax advantages of life insurance?

A:  Death benefits are generally received income tax-free by your beneficiaries. In the case of permanent life insurance policies, cash values accumulate on an income tax-deferred basis. That means you would not have to pay income tax on any of the policy’s earnings as long as the policy remains in effect. 

NOTE: Any discussion of taxes is for general informational purposes only and does not purport to be complete or cover every situation. DTM Financial, its agents and representatives may not give tax advice and the above should not be construed as such. Please seek advice based on your particular circumstances from a qualified tax advisor.


Copyright © 2019 Denise Murphy | All Rights Reserved