Can You Separate Myth from Reality When It Comes to Life Insurance?
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There’s a lot of conflicting information about life insurance that sometimes prevents people from taking any action at all. We are committed to educating people about the truths of life insurance and tackling some of most common misconceptions. Fortunately, the realities – and benefits – of life insurance are becoming more widely understood and promoted.
Among the many life insurance myths out there, there are two that seem to make their way to the forefront: permanent life insurance is too expensive and life insurance is too confusing and difficult to buy. One single life insurance product doesn’t have to be a complete solution. To fully meet your needs, including cost, a combination of products can be put into place. With such a diverse lineup of products available, it often makes sense to curate a solution that creates additional value rather than settling for just one product right off the shelf. When you work with an experienced financial professional, you can build a carefully crafted life insurance solution that addresses your unique situation.
And when you’re ready to take the next step, Penn Mutual’s fully digital purchasing platform, ACE, makes it easier than ever. Our streamlined process lets you apply anywhere, anytime and fully online while our underwriting team also has more information at their fingertips and can offer faster, sometimes immediate, approvals.
The tax implications of life insurance are also often misunderstood. You may not realize that the death benefit is income tax free. In fact, from a tax perspective, there are very few other assets that are treated like life insurance. Certain product features can also offer you the ability to take tax-free loans from your policy, which is another undervalued benefit.1
Let’s take a look at some more reality checks:
It’s important to know the truths of life insurance and all the benefits it can offer. Armed with that knowledge, it’s easier to understand what a significant role it can play in any financial strategy and the unique value it can bring to your life.
To get started, work with your financial professional to learn more about what life insurance can offer you.
1Loans and other policy withdrawals may be taxable under certain circumstances. Always consult your tax advisor before taking a loan from a policy.
2 Accessing cash value will reduce your policy death benefit and values, may result in certain fees and charges and may require additional premium payments to maintain coverage. Ask your financial professional for details on accessing your cash value, including how it might impact the coverage guarantees and situations when the values you access could be taxable. Always consult your tax advisor before accessing a policy’s cash value.
The information in this material is for informational purposes only and is not intended as financial, tax or legal advice. Reference to the taxation of products in this material is based on Penn Mutual’s understanding of current tax laws. All guarantees are subject to the claims paying ability of the insurer. Depending on your individual circumstances, the strategies discussed in this presentation may not be appropriate for your personal situation. Always consult your financial, legal or tax professionals.
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