Need a life insurance policy that will last a lifetime but value flexibility?
Consider Universal Life Insurance which offers a permanent life insurance policy with a portion of each payment accumulating cash value in an interest-earning account. You can increase your payments to add funds3 or reduce/stop paying premiums4 depending on your needs. You can even increase the amount of coverage5 if desired, or access your accumulated cash value to help pay for college.
Universal Life will be there to support your beneficiaries after your death with funds for things like your child’s college education, an additional income stream, a mortgage, or estate taxes—that’s flexibility tailored for your future.
DECIDING THE AMOUNT OF LIFE INSURANCE YOU NEED
Funeral expenses, unpaid debts, unpaid hospital bills, probate costs, and estate and inheritance taxes.
Due to premature death, your family may need to make adjustments in their lifestyle. They may need to move, or the surviving spouse may need additional training to qualify for a higher paying job—the emergency fund may help cover the cost of making these necessary adjustments.
The cost of your children’s' education, including elementary school, high school, and college. Life insurance may help cover this expense.
Providing the money necessary to pay off the mortgage or provide an income stream to pay the monthly mortgage or rent payments may be a consideration.
Funds needed to payoff any debts including auto loans, credit cards, and other loans should be considered.
The amount needed to help provide your family with anticipated retirement income in the event of your death is suggested to be five times your current annual income.
Non-employed spouses make a valuable contribution to the family's needs; fulfilling these needs may require additional income.
Everyone's life insurance needs are different. It is important to review your life insurance needs with an agent at least every two years.
SPEAK WITH AN AGENT
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Life insurance underwritten and annuities offered by our affiliate AAA Life Insurance Company, Livonia, MI. AAA Life Insurance Company is licensed in all states except NY. AAA Life CA Certificate of Authority #07861. Automobile Club of Southern California acts as an agent for its affiliate, AAA Life Insurance Company. CA Dept. of Insurance License #0003259. ALSC-20298-312-CA.
1The life insurance needs assessment is for informational purposes only and is only a broad, general guideline based on information provided to the agent. Any recommendations are not based on legal, financial, or tax advice. You may wish to consult with an independent legal, financial, or tax professional before purchasing life insurance. Your local AAA club and AAA Life Insurance Company do not provide tax advice. Life insurance underwritten by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life Insurance Company is licensed in all states except NY. Automobile Club of Southern California acts an authorized agent of AAA Life. CA Dept. of Insurance Lic. #0003259. ALSC-19472-N10-CA.
2Annuities are not considered short-term investments. Surrender charges may apply, and the fees and charges associated with a fixed-rate annuity are usually higher than other investments like certificates of deposit. Under current tax law, earnings withdrawn before age 59 1/2 may be subject to IRS penalty. Withdrawals exceeding 10% of the accumulation value are also subject to a contractual withdrawal schedule included in each contract. AAA Life and its agents do not provide legal or tax advice. Therefore you may wish to seek independent legal, tax or financial advice prior to the purchase of an annuity contract.
3You can increase your payments to add funds to the accumulated cash value, up to a specified limit. (The growth in cash value is tax-deferred under current federal income tax law.)
4You can also reduce or stop paying premiums as long as you maintain certain minimum cash value levels.
5If you need additional coverage, you can, with approval, increase the amount of coverage to suit your current needs. Coverage amounts range from $100,000 to more than $1 million.