Choosing the Right Life Insurance

Risk can either be transferred, avoided, mitigated or accepted. Life insurance is used to transfer the risk of premature death. The insured incurs a known up-front cost (insurance premium) in exchange for the insurer assuming the potential funding of catastrophic risk(s).

It is also a wealth creation tool and can play a significant role in the estate planning process.

There are several variations of life insurance, but generally two primary categories — term life insurance and permanent life insurance. Here are some things to consider in determining which type fits your situation:

Determine the length of time you might be exposed to a particular risk — for indefinite exposures, consider permanent insurance. Alternatively, as the name suggests, term insurance might solve temporary risks (i.e., the risk of a premature death before saving enough for your child(ren)’s college expenses)
Determine the amount of life insurance (death benefit) for each need; there might be several needs
Identify the proper ownership of the life insurance; having three separate individuals named as the 1. Owner of the policy; 2. Individual Insured by the policy; and 3. Beneficiary of the policy should be avoided
Identify the proper beneficiary of the life insurance

As with most personal finance decisions, life insurance should be considered in relation to your entire financial picture. If you are considering fulfilling your life insurance need(s), we would be happy to start the conversation with you.

IMPORTANT DISCLOSURES

The information contained herein represents the current views and opinions of Westwood Wealth Management and its Financial Planning Group (collectively “Westwood”). The content presented has been curated by Westwood, but the material is the product and property of Broadridge Investor Communication Solutions, Inc., which Westwood has licensed for use and distribution. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable.

This presentation does not constitute an offering of any security, product, service or fund. No investment strategy can guarantee performance results. Past performance is no guarantee of future results. All investments are subject to investment risk, including loss of principal invested.

This presentation is provided without regard to the specific investment objectives, financial situation or particular needs of any specific recipient and does not contain investment recommendations. This publication is also designed to provide general information about economics, asset classes and strategies. All sector and asset allocation recommendations must be considered in the context of an individual investor’s goals, time horizon and risk tolerance. Not all asset classes and strategies will be suitable for all investors.

Westwood makes no representations as to the accuracy or the completeness of any of the information herein. The information in this material is only as current as the date indicated and may be superseded by subsequent market events or for other reasons. Any statements of opinion constitute only current opinions of Westwood, which are subject to change and which Westwood does not undertake to update.