What You Need To Know
Life Insurance can do some pretty amazing things. It can buy loved ones time to grieve and pay off debts. It can keep families in their homes and prefund a child’s college education, but there is one catch…………. You need to own it.
The right plan is important in preparing for the future of you and your family. Life insurance will help you meet financial obligations for when you are gone.
The future of your loved ones need not be left to chance. Select Source Insurance Group can help you choose the right policy. We can help ensure that your policy will meet your needs in the future. We have over 25 companies to shop for the best plan.
Life Changes –
Your Plan Should Change Also
- You recently purchased a new home
- You have a new child or grandchild
- You have opened or expanded a business
- You have refinanced your home mortgage in the past six months
- Deteriorated health for you or your spouse
- Financial assistance that you provide to a parent
- Children or a grandchild requires long-term care or special needs
- You recently divorced or seperated
- Planning for a child or grandchild’s education
- Planning for retirement income
- An inheritance has been received by you or your spouse
- You have an estate subject to taxation and other needs
South Carolina – What Is The Right Life Insurance Plan
We can help you select the best plan for the needs of your family.
There are many types of life insurance products available –
the most common include:
Whole Life Insurance
- Whole life insurance a permanent policy that remains in force for your whole lifetime. This is as long as the premiums are paid as agreed.
- This plan can be insurance and an investment opportunity.
- Also, it can also grow cash value over time.
Term Life Insurance
- Term life policies provide protection for a specific time period.
- Term life insurance can be a good place to start if you do not have any life coverage.
- It generally costs less than permanent (whole) life insurance.
- It can cover varying periods of time with fixed premiums from a one year (annual renewable term) to 30-year (level term) period.
- Also, term life insurance can sometimes be converted to permanent coverage, providing you with flexibility as your needs change.
Endowment Term Life Insurance (Return of Premium, ROP)
- This plan is the same as Term Insurance above but at the end of the term if you outlive the policy you get 100% of your premiums back.
Universal Life Insurance
- Universal life is a type of permanent life insurance but has flexible premiums, face amounts and different pricing structure.
- Universal life can build cash value, which earns an interest rate that may vary, but is usually has a minimum guarantee.So what type of life insurance is best for you? Talk with the team at Select Source Insurance Group today at: 864-585-8318 x2, and we can assist in identifying the best protection for you.
What Are The Benefits Of Life Insurance?
Obtaining the right plan is imperative to planning for the present, and the future. A plan can furnish assurance for your family after you are gone. Many life plans offer other investments and benefits you can take advantage of while you are living.
- Advantages of the life insurance death benefit: Life insurance provides income tax-free money when you pass away. This money goes to your beneficiaries. This money can be used to pay debt, funeral expenses, tuition, or any financial need. Your plan can provide security for your business as well. It can make resources available to partners to buy out the interests of a deceased partner.
- Advantages of Living Benefits: The investment growth of a permanent (whole) life insurance policy is tax-deferred. That means you do not pay taxes on the growth of cash value, unless money is withdrawn. Withdrawals or loans can be taken against the cash value of a whole life insurance policy to help with costs, like a down payment on a home or college tuition.
The right life insurance plan for our neighbors in South Carolina is unique – talk with the Select Source Insurance Group team at 864-585-8318 x2 today to find out how we can help protect your family and your future with the right plan.
See what our clients are saying about us:
B Jenkins 5 STARS
D Rhodes-Metcalf 5 STARS
Life Insurance Frequently Asked Questions
Q: How much life insurance should an individual own?
A: “Rule of thumb” suggests an amount of life insurance equal to 6 to 8 times annual earnings. These life insurance FAQs can help. However, many factors should be taken into account when determining the right amount of life insurance for you and your family.
Important factors include:
- Income and amounts other than salary earnings
- Whether or not you are married and, if so, what is your spouse’s earning capacity
- The number of individuals who are financially dependent upon you
- The amount of death benefits payable from social security
- Whether any special life insurance needs exist – (mortgage repayment, education fund, estate planning need, etc.)
Calculating the correct amount of life insurance to buy in South Carolina is not as simple as it appears. We recommend contacting our life agents at: 864-585-8318 x2. They can help determine the right amount of coverage you need. As an independent agent, we have unbiased advisors that will help you avoid buying too much. We can show you the appropriate and optional coverages for your need. Also we can recommend a company that will best serve your interests.
The necessity of life insurance depends on your own personal and financial needs. At Select Source Insurance, we assist and help you determine the type and amount of life insurance that is appropriate for you and your family. Generally, you should consider life insurance if:
- You have a spouse
- You have dependent children
- You have an aging parent or a physically challenged relative who depends on you for support
- Your retirement savings are not enough to insure your spouse’s future against a rising cost of living
- You have a sizable estate
- You own a business
Additional benefits of life insurance other than providing for your loved ones, in case something happens to you include:
- The cash value earned and borrowed from a permanent life insurance policy can be used to help with large expenses, such as a college education or down payment on a home.
- The growth of a cash-value policy is tax-deferred — you do not pay taxes on the cash value accumulation until you withdraw funds from the policy.
- Life insurance can be used to cover funeral expenses and pay estate taxes — consult your tax advisor agent in Spartanburg for more information.
The right coverage for you in South Carolina is unique – talk to us today at the Select Source Insurance 864-585-8318 x222 and find out how to protect your family and your future with the right life insurance.
Q: What about purchasing life insurance for a spouse or children?
A: In certain situations, it is advisable to purchase life insurance for children. However, generally such purchases should not be made in lieu of buying the right amounts of life insurance on the family breadwinner(s).
It is of most important that the income-earning capacity of the primary breadwinner be fully protected. They should purchase the required amount of life insurance. This should be done before purchasing life insurance for children or on a non-wage-earning spouse. Life insurance on a non-wage-earning spouse is often recommended for the purpose of paying for household services lost due to this individual’s death. In a dual-earning household, it is important to protect the income earning capacity of both spouses.
Q: Should term insurance or cash value life insurance be purchased?
A: This depends on your personal circumstances.
First, recognize that in any life insurance purchasing decision, two questions must be answered:
- “How much life insurance should I buy?”
- “What type of life insurance policy should I buy?”
The first question should always be initially resolved. For example, the amount of life insurance that you need may be so large that you can only afford term insurance, since term insurance has a lower premium.
Is your ability to pay life insurance premiums such that you can afford the desired amount of life insurance? If under either type of policy, then it is appropriate to consider the second question — what type of policy to buy. Important factors affecting this decision include:
- your income tax bracket
- whether the need for life insurance is short-term or long-term (e.g., 20 years or longer)
- and the rate of return on alternative investments possessing similar risk
Q: How does mortgage protection term insurance differ from other types of term life insurance?
A: The face amount under mortgage protection term insurance decreases over time. It is consistent with the projected annual decreases in the outstanding balance of a mortgage loan. Mortgage protection policies are generally available to cover a range of mortgage repayment periods – (e.g., 15, 20, 25 or 30 year). Although the face amount decreases over time, the premium usually remains the same. Further, the premium payment period is often shorter than the maximum period of insurance coverage — for example: a 20-year mortgage protection policy might require level premiums be paid over the first 17 years.
Q: Can an existing life insurance policy be used to provide for the repayment of an outstanding mortgage loan?
A: Yes. An existing policy, either term or cash-value life insurance, can be used for many purposes.This includes paying off an outstanding mortgage loan balance in the event of the insured’s death. Although a lender may offer a mortgage protection term policy to you, the lender rarely requires it.
Credit life insurance is frequently recommended in conjunction with taking out an installment loan. You may be required to life insurnace to purchase expensive appliances, a new car, or for debt consolidation.
Q: Is credit life insurance a good buy?
A: Credit life insurance is frequently more expensive than traditional term life insurance. If you already own a sufficient amount of life insurance to cover your financial needs, including debt repayment, the purchase of credit life insurance is normally not advisable due to its relatively high cost.