People buy life insurance for a number of reasons. One of the primary reasons is providing income protection for a family in the event a breadwinner passes away. Another reason is providing financial security for children should something happen to the parents. Life insurance can even be a way to offset estate taxes in large estate plans.
Another reason some people buy life insurance is to save for retirement. The cash value in some permanent life insurance policies can grow tax deferred and the cash value can be borrowed at a later date. When using life insurance as a cash savings vehicle it is important to understand the internal fees and guarantees that are built into the policy.
Montana Life Group rarely recommends the use of life insurance as a savings vehicle. Our stance is that life insurance should be used as a tool for financial protection in case of death. While cash value policies can be attractive investments for some people, Montana Life Group is not in the business of helping with investments. Instead our focus is on providing financial protection in the most cost-effective way possible.
When deciding whether or not to buy a life insurance policy it is important to start by determining the purpose of the life insurance policy and the amount of desired coverage. At Montana Life Group we have a process that can help you determine just how much life insurance is needed and the term length you should consider buying. Of course it is also important to consider the monthly cost of the insurance and the financial strength of the underwriting insurance carrier.
Life Insurance Needs Calculator
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