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Take a look at the truths about life insurance and then let's talk.
It’s true that the main benefit of life insurance is to leave money for your family when you pass away, and it can be part of your overall strategy to help build generational wealth.
We’ve all heard myths about life insurance. That's why it may be hard to know who you can trust when making such an important decision for you and your family.
I don’t need to make my family rich when I die.
Myth 4
Life insurance benefits are only paid after I die.
Myth 3
It’s too much of a hassle to buy it.
Myth 2
Life insurance costs too much.
Myth 1
TERM LIFE INSURANCE FOR A HEALTHY 30-YEAR OLD IS AROUND $13 PER MONTH.
Take control of your financial future with help from your financial advisor today.
(This information is hypothetical and not representative of any particular product).
Her aspirations are clear: a home of her own, a family, and a life filled with purpose. She comes from a large family and wants to know that her loved ones will be taken care of if anything unexpected happens to her. Life insurance seems like a sensible choice but she’s not sure where to start or if she can afford it.
31, Customer Service Manager in Atlanta, GA
Your life insurance needs may change over time. After you purchase a policy, a quick chat with your financial advisor each year can help you determine if your coverage is still aligned with your goals. If you need to make a change, your advisor can help. You may even be able expand your coverage while lowering your premium payments.
More than half of Americans overestimate the cost of life insurance by as much as three times! The truth is life insurance can be a cost-effective way to help protect your family and ensure your hard work and sacrifices have a lasting impact by giving your family a foundation to help build generational wealth.
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Permanent life insurance also provides a death benefit when you’re gone and has the potential to grow cash value. It can also serve as a source of supplemental income, which you can use for anything you like such as a down payment on a home, medical expenses, or supplementing your retirement income.
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Term life insurance can give you the comfort of knowing you have death benefit protection for a specific period of time and can be a perfect starting point for those new to life insurance. Term life insurance can help your family replace your income to cover everyday expenses like, a mortgage or other debts that would be passed on to them.
• She’s not married yet—is this the right time to buy insurance?
• Navigating the application process with a trusted professional.
• Affording life insurance on her budget.
Alex, a 31-year-old millennial, is living the classic American dream. She landed a steady job after high school and has been promoted several times due to her strong work ethic. She has made a home in her cozy, stylish Atlanta apartment where she entertains regularly. Alex has a positive outlook on her financial future and she’s excited about what’s next!
Alex is asking the right questions at the right time. She’s working with a financial advisor to determine which life insurance product best meets her needs at this stage of life, but also fits her budget.
Alex is relatively young and healthy so there are affordable coverage options available to her. She and her advisor determine that a 20-year term life insurance policy for $150,000 is the right option. Alex feels confident knowing that she’ll be able to increase her coverage amount and convert the policy to a permanent policy should she get married, buy a home, or have children in the future.
Term Essential is issued by Pruco Life Insurance Company except in New York, where it is issued by Pruco Life Insurance Company of New Jersey. Both are Prudential Financial companies located in Newark, NJ. The policy form number is PLTIC-2019 or ICC19 PLTIC-2019. The issuing company may have the right to contest the policy for misrepresentation or to apply a suicide clause. This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. If you would like information about your particular investment needs, please contact a financial professional. Life insurance policy cash values grow tax deferred and are potentially income tax-free. You can access your cash value through loans and withdrawals. In general, loans are charged interest; they are usually not taxable. Withdrawals are generally taxable to the extent you take more money out of the policy than you've paid in premiums. Any loans that remain unpaid when the policy lapses or is surrendered while the insured is alive will be taxed immediately to the extent of gain in the policy. Loans and withdrawals may reduce or eliminate cash values and the death benefit payable to your beneficiaries. Clients should consult a tax advisor. We do not provide tax, accounting, or legal advice. Clients should consult their own independent advisors as to any tax, accounting, or legal statements made herein. All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not backed by the broker-dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them make any representations or guarantees regarding the claims-paying ability of the issuing insurance company. Policies contain exclusions, limitations, reductions in benefits, and terms for keeping them in force. A financial professional can provide you with costs and complete details. INVESTMENT AND INSURANCE PRODUCTS ARE: • Not FDIC insured • Not insured by any federal government agency • Not a deposit or other obligation of, or guaranteed by, any bank or its affiliates • Subject to investment risks, including possible loss of the principal amount invested © 2024 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. ISG_WE_ILI393_01 1083009-1
2024 Insurance Barometer Study, LIMRA and Life Happens.
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Walt Disney Timeline, accessed 9/25/2024,
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www.justdisney.com
Subject to meeting terms and conditions of the rider. Receiving benefits under the terms of this feature (rider) will reduce and may eliminate the death benefit for your beneficiaries. It is not Long-Term Care (LTC) insurance, and it is not intended to replace LTC. Additional premiums, underwriting requirements, and limits may also apply.
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Issuance of the policy will depend upon answers to health question set forth in the application and third-party data.
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$100,000 death benefit, male, Preferred Non-Tobacco, Term Essential 20 year. If you continue the policy beyond the initial level-premium period (in this case, 20 years), premiums will then increase annually through age 95 but will never be more than the maximum stated in the contract. In New York, the amount of coverage will be lower. Rates as of 9/20/2024. Availability and actual rates will vary based on how you satisfy our underwriting and eligibility criteria.
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2023 Insurance barometer study, Limra and life happens.
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Accessibility
1083009-00001-00 Ed. 09/2024
Get empowered with your trusted financial advisor. It’s easier than ever to protect what matters!
Getting guidance from a financial advisor helped Jamal feel confident that he was choosing the right policy for his situation. Plus, he was surprised to learn how easy the application process was. He handled every part of the process from his phone or tablet on his own schedule. And best of all there were no visits to the doctor.
Jamal scheduled a video call with a financial advisor that his business partner highly recommended. The financial advisor reviewed the different life insurance policies available that could offer protection for Jamal's family. They also discussed how life insurance could be used to help protect the future of his business.
Jamal knows that his family depends on him and his business to provide for them. He wants to make sure his family will continue to be financially secure in case the unexpected happens. Life insurance seems like a sensible option, but running his business is demanding and he has very little time to research policy and coverage options. Also, Jamal tried to apply once before but the process was complicated and felt intrusive.
Jamal, a successful business owner and a dedicated family man, is raising his children, Madison and Jamal Jr., with his loving wife, Mara.
• Finding the time to complete the application process.
• Ensuring his family has the financial resources they need to thrive.
36, Business Owner in Brooklyn, NY
GETTING LIFE INSURANCE IS EASY—APPLY ONLINE WITH YOUR PHONE, TABLET, OR LAPTOP.
In many cases, you won't need a medical exam to qualify for coverage. Most medical information can be obtained electronically. Even if you haven’t been approved for life insurance in the past due to health challenges, it's worth checking again to see if you qualify.
The next step is the underwriting interview which can be completed online at a time that’s convenient for you.
Apply online at your own pace using your phone, tablet, or laptop. Or, your trusted financial advisor can help guide you through the application process.
For many Black families, life insurance is often overlooked. However, today's simplified application process makes it easier than ever to buy life insurance and help secure a lasting legacy for your loved ones.
Life insurance may feel like an overwhelming process. But with a financial advisor by your side and technology that streamlines every step, you can get the protection you need and then get back to living your best life.
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Get educated! Meet with a financial advisor today.
Their advisor explained that once they'd met the conditions of the rider, they could accelerate the death benefit and use that money to help pay for any number of things. They were also made aware that the rider will reduce the death benefit and there may be tax considerations.
Tonya and Chris are meeting with their trusted financial advisor to review their existing term life insurance policy and explore the possibility of purchasing a permanent life insurance policy with a rider to help address their chronic illness concerns.
Tonya, a highly educated homeowner in her late 30s, was the picture of financial confidence until her mother developed a chronic illness and Tonya became her primary caregiver. Her mother didn’t have sufficient health insurance, but Tonya and her husband Chris were able to afford the additional expense. The experience made the couple realize the importance of financial protection for life’s unplanned events. Tonya and Chris are now feeling unsettled about the possibility of burdening their family if something unexpected happens to them. They can’t shake the feeling that they need to do more to help protect themselves and their loved ones.
• How a life insurance policy will affect her estate taxes.
• Relieving the financial burden on her family if she becomes chronically ill.
• How the expense of life insurance will fit into the family’s financial plan.
37, Attorney managing her private practice in Newark, NJ
WALT DISNEY BORROWED FROM HIS LIFE INSURANCE POLICY IN 1953 TO HELP FUND DISNEYLAND.
Some life insurance policies offer added benefits that can provide financial support if you're diagnosed with a chronic or terminal illness, where you can “accelerate” (or use) part of the death benefit. This can help alleviate the stress of medical bills and lost income, taking the strain off your family, allowing you to focus on your health.
Use the cash value in your life insurance policy to help supplement your retirement income and enjoy additional financial flexibility. Please note that outstanding loans and withdrawals will reduce policy cash values and the death benefit and may have tax consequences.
Life insurance can also help when life throws you a curveball, such as unexpected car and home repairs, braces for your kids, or medical bills.
Need additional funds to help with a down payment on your dream home? Perhaps you want to pay for a child’s college education or wedding. You can access the cash value of life insurance to help with these costs.
Some policies let you grow cash value, which you can use for anything from a down payment on a house to helping supplement your retirement income. You may also have the flexibility to access the death benefit for yourself in certain circumstances. These are known as living benefits because you can access them while alive.
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Get educated. Consult with a financial advisor today!
Once viewed as an unnecessary expense, Joyce and Michael now view life insurance as a lasting way to show how much they love their family.
Joyce and Michael are working with their trusted financial advisor to reexamine their long-held beliefs about money. They are excited to learn how life insurance can be used as as part of an overall estate plan to help leave a lasting legacy that can be passed to their children, grandchildren, and beyond.
As Joyce prepares to join her husband Michael in semi-retirement, the couple is excited about spending quality time with their family by their side, especially their grandchildren! They modeled a strong work ethic for their children and, until recently, they didn’t feel responsible for making them rich when they’re gone. But their grandchildren have melted their hearts and shifted their perspective. They want to explore ways to leave a financial legacy for their family while maintaining a comfortable life in their golden years.
• Their ability to qualify for life insurance at their age.
• Tax implications could affect their retirement income.
• Building generational wealth while living comfortably when they retire.
Joyce, 59, Human Resource Executive in Newark, NJ Michael, 63, Semi-Retired, Former Police Chief in Newark, NJ
THE MEDIAN LIFE INSURANCE COVERAGE OFFERED AT THE WORKPLACE IS ONLY $20,000 OR ONe YEAR’S SALARY.
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The potentially tax-free death benefit can help provide greater financial security for your family if you're no longer there. It's another way to express your love for them.
The death benefit from your life insurance policy can help ensure you leave a financial legacy for future generations. Your family can use the death benefit to pay any expenses including estate taxes, which means you can enhance the legacy you’ve worked hard to build.
What would life be like for your loved ones if something happened to you? Life insurance can help replace your income, allowing your family to cover household expenses and continue building the future you planned. It's like saying, "I've got your back, no matter what."
Life insurance isn’t just about protection; it’s added comfort for you and your loved ones. Imagine the security you will feel knowing they’re financially protected, no matter what life throws their way.
Provide coverage for the rest of your life. Most policies have the ability to grow cash value and allow you the ability to access money in the policy.
This can be thought of as the "beneficiary benefit." The total amount of money the beneficiaries receive when the covered person(s) dies.
Underwriting, a term used frequently in the insurance industry, is an evaluation of your current health, medical history, family medical history, and lifestyle. To purchase life insurance, you may have to take a medical exam to assess your health.
Features and benefits of a life insurance policy the covered person can use while they are alive. These benefits can be things like chronic illness benefits, loans and withdrawals, and more.
Money that can grow in a permanent policy. This money in the policy can usually be accessed by taking withdrawals or policy loans. Outstanding loans and withdrawals will reduce policy cash values and the death benefit and may have tax consequences. Being able to tap into this money can be part of your strategy and among the reasons for buying a particular policy.
These are optional benefits or additions you can make to your life insurance to provide specific coverages and tailor your policy to your needs.
These are the payments you make to the insurance company.
Provides temporary coverage, usually for a period of 10, 15, 20, or 30 years.
Life insurance is a contract in which an insurer, in exchange for a premium, guarantees payment (known as a death benefit) to an insured's beneficiaries when the insured dies.
