First Robinson Investment Services

First Robinson Investment Services Investment Adviser Representative

(618) 544-8621 jason.sutfin@ceterais.com

Life Insurance Myths: Debunked

Insurance

Life Insurance Myths Debunked! Do you really need life insurance? Do you assume it’s too expensive? Are you relying on the coverage you’ve purchased through work to stay with you forever? If so, you may have fallen prey to some common life insurance myths. But never fear! The truth squad is here to clear things up. Let’s take a look.

Life Insurance Myths Debunked! Do you really need life insurance? Do you assume it’s too expensive? Are you relying on the coverage you’ve purchased through work to stay with you forever? If so, you may have fallen prey to some common life insurance myths. But never fear! The truth squad is here to clear things up. Let’s take a look.

Myth #1: If you’re single or married without children, you don’t need life insurance. Myth Debunked. Even if you don’t have a spouse or dependents, life insurance is still important. You can use it to leave a legacy or to help pay off any debts you owe. The right life insurance policy can help you protect your loved ones and support your community long after you’re gone. (1)

Myth #1: If you’re single or married without children, you don’t need life insurance. Myth Debunked. Even if you don’t have a spouse or dependents, life insurance is still important. You can use it to leave a legacy or to help pay off any debts you owe. The right life insurance policy can help you protect your loved ones and support your community long after you’re gone. (1)

Myth #2: Life insurance is too expensive. Myth Debunked. You may be surprised to learn that many life insurance strategies are quite approachable. Starting with a policy that fits your budget can make sure you are protected today, while letting you purchase additional coverage down the road if you need to. (2)

Myth #2: Life insurance is too expensive. Myth Debunked. You may be surprised to learn that many life insurance strategies are quite approachable. Starting with a policy that fits your budget can make sure you are protected today, while letting you purchase additional coverage down the road if you need to. (2)

Myth #3: I have life insurance through my job. If I leave or retire, I’ll bring my policy with me. Myth Debunked. Unfortunately, employer-offered life insurance usually isn’t portable. So, when you leave your job, you may also be leaving your life insurance behind. By purchasing your own policy, you can take it with you. Another bonus: you may qualify for more personalized coverage. (3)

Myth #3: I have life insurance through my job. If I leave or retire, I’ll bring my policy with me. Myth Debunked. Unfortunately, employer-offered life insurance usually isn’t portable. So, when you leave your job, you may also be leaving your life insurance behind. By purchasing your own policy, you can take it with you. Another bonus: you may qualify for more personalized coverage. (3)

Myth #4: My beneficiaries will have to pay income tax on the proceeds from my life insurance policy. Myth Debunked. Proceeds received as a beneficiary aren’t generally counted toward gross income. However, any additional interest payments may be taxed. Keep in mind that this article is for informational purposes only. It’s not a replacement for real-life advice, so make sure to consult your insurance or tax professional for more information. (4)

Myth #4: My beneficiaries will have to pay income tax on the proceeds from my life insurance policy. Myth Debunked. Proceeds received as a beneficiary aren’t generally counted toward gross income. However, any additional interest payments may be taxed. Keep in mind that this article is for informational purposes only. It’s not a replacement for real-life advice, so make sure to consult your insurance or tax professional for more information. (4)

Myth #5: I’m a full-time parent and draw no income. Surely I don’t need life insurance. Myth Debunked. As a full-time parent, you provide valuable services that could be expensive to replace. If you pass away, the benefits from a strong life insurance policy may help ensure that your family will continue to receive childcare, transportation, home maintenance, and other necessary supports. (5)

Myth #5: I’m a full-time parent and draw no income. Surely I don’t need life insurance. Myth Debunked. As a full-time parent, you provide valuable services that could be expensive to replace. If you pass away, the benefits from a strong life insurance policy may help ensure that your family will continue to receive childcare, transportation, home maintenance, and other necessary supports. (5)

Myth #6: I’m already retired; it’s too late for life insurance. Myth Debunked. Maintaining life insurance post-retirement can be a wise move. Depending on your policy, you may have access to living benefits, which can support you if you need extended care or contract a terminal illness. Life insurance can also be a means of transferring wealth. What kind of legacy do you want to leave behind? (6)

Myth #6: I’m already retired; it’s too late for life insurance. Myth Debunked. Maintaining life insurance post-retirement can be a wise move. Depending on your policy, you may have access to living benefits, which can support you if you need extended care or contract a terminal illness. Life insurance can also be a means of transferring wealth. What kind of legacy do you want to leave behind? (6)

Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder may also pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments. 1. Coverage.com, April 28, 2020. 2. Allstate.com, December 2019. 3. Coverage.com, April 28, 2020. 4. IRS.gov, September 20, 2019. 5. TheLadders.com, September 11, 2019. 6. USNews.com, February 27, 2020.

Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder may also pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments. 1. Coverage.com, April 28, 2020. 2. Allstate.com, December 2019. 3. Coverage.com, April 28, 2020. 4. IRS.gov, September 20, 2019. 5. TheLadders.com, September 11, 2019. 6. USNews.com, February 27, 2020.

Have a Question?

Name

Email

Address

Question

Thank you! Oops!

501 East Main Robinson, IL 62454

Check the background of your financial professional on FINRA's BrokerCheck.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Copyright 2023 FMG Suite.

Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Advisory services are only offered by Investment Adviser Representatives. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency.

This site is published for residents of the United States only. Registered Representatives of Cetera Investment Services LLC may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Investment Services LLC site at ceterainvestmentservices.com

501 E. Main Street, Robinson, IL 62454

Important Disclosures | Business Continuity

Individuals affiliated with this broker/dealer firm are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.