The way that
you invest your money in the short-run is of ultimate importance on how you and
your family will be protected in the long-run.
Short
Term
If you
invested $100.00 per month in a 401K on your job for the entire year and passed-away
in month 12, your beneficiaries would only receive what you put into the fund.
$1200.00
If you
invested $100.00 per month in a life insurance policy with a $150,000.00 face
value, your beneficiary would receive $150,000.00 tax-free. Whether you passed
30 days or one year after the policy was enforced.
Long
Term
If you
needed funds from your 401K for a medical emergency, you would be subject to
penalties and taxes if those funds were withdrawn before age 59 and a half.
If you
acquired a life insurance policy with Living Benefits, in that same situation
and you suffered a covered illness or injury, you would be entitled to 70 to 90
% of the face value after 30 days of the policy’s enforcement date* and your
beneficiary would be entitled to the remainder of the face value if you were
to pass away.
Make no
mistake both have a cost. 401K applies penalties and whole life insurance takes
time to build up cash value, but the big difference is we don’t’ know when we
will need the money and to have the larger amount available in the short-term
may provide the greatest protection for your family.
In addition,
your 401K fund is tied to the stock market and you could rise and fall in
accordance. If your policy’s face value is $150,000.00, it will remain the same
no market what happens in the stock market.
Are you properly
insured? Are all your children insured? Now, like never before, it is time to
be sure that you and your family are properly protected.
Contact us
today for a free consultation.
Ms. Sonja
Cassandra Perdue, Founder
Living
Benefits Insurance Quote
*Terms and conditions
apply.
*Consult with a
professional tax and/or legal advisor before taking any action that may have
tax or legal consequences.
*This information is
provided for informational purposes only. This article is not intended to
provide tax, legal, or financial advice. Please consult your own professional
for advice specific to your circumstances.
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