Article: Why Purchase Life Insurance? : Why Purchase Life Insurance? skip navigation Smart Strategies For Income Investors Contact Us 12555 Orange Drive Suite 103 Davie, FL 33330 Phone: 954-862-1450 Fax: 954-862-3628 E-mail address: jheld@pfinvestor.com Home About Us Our Mission Statement Our Associates Our Location Our Firm Our Services Our Qualifications Orion Portfolio Solutions Login Tell A Friend Resources Articles Calculators Flipbooks Newsletters Glossary Tax Library Videos Market Watch Detailed Quotes Symbol Lookup Multi Quote Markets at a Glance Charting Portfolios Request A Quote Annuity Long-Term Care Insurance Group Health Life Insurance Individual Health Disability Income Insurance 401(k) Information Request Information Request Contact Us Smart Strategies For Income Investors Printed from: www.pfinvestor.com Why Purchase Life Insurance? We’ve all heard about the importance of having life insurance, but is it really necessary? Usually, the answer is “yes,” but it depends on your specific situation. If you have a family who relies on your income, then it is imperative to have life insurance protection. If you’re single and have no major assets to protect, then you may not need coverage. In the event of your untimely death, your beneficiaries can use funds from a life insurance policy for funeral and burial expenses, probate, estate taxes, day care, and any number of everyday expenses. Funds can be used to pay for your children’s education and take care of debts or a mortgage that hasn’t been paid off. Life insurance funds can also be added to your spouse’s retirement savings. If your dependents will not require the proceeds from a life insurance policy for these types of expenses, you may wish to name a favorite charity as the beneficiary of your policy. Permanent life insurance can also be used as a source of cash in the event that you need to access the funds during your lifetime. Many types of permanent life insurance build cash value that can be borrowed from or withdrawn at the policyowner’s request. Of course, withdrawals or loans that are not repaid will reduce the policy’s cash value and death benefit. There are expenses associated with life insurance. Generally, life insurance policies have contract limitations, fees, and charges, which can include mortality and expense charges, account fees, underlying investment management fees, administrative fees, and charges for optional benefits. Most policies have surrender charges that are assessed during the early years of the contract if the contract owner surrenders the policy. Any guarantees are contingent on the financial strength and claims-paying ability of the issuing insurance company. Life insurance is not guaranteed by the FDIC or any other government agency; it is not a deposit of, nor is it guaranteed or endorsed by, any bank or savings association. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. If you are considering the purchase of life insurance, consult a professional to explore your options. The information in this newsletter is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the ­purpose of ­avoiding any ­federal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the ­purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2022 Broadridge Financial Solutions, Inc. Contact Us 12555 Orange Drive Suite 103 Davie, FL 33330 Phone: 954-862-1450 Fax: 954-862-3628 E-mail address: jheld@pfinvestor.com Securities offered through Securities America, Inc. Member FINRA/SIPC. Advisory services offered through Securities America Advisors. Princeton Financial is not affiliated with the Securities America companies. This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed. Site Map Check the background of this investment professional Check the background of this financial professional on FINRA's BrokerCheck Check the background of this financial professional on FINRA's BrokerCheck