Fresh Ground Financial

offering you Lifestyle Planning. A plan that's built around the life you want TODAY and TOMORROW. Helping you get as close as possible to the lifestyle that is in your head - that you really want

LIFE INSURANCE

Just like the foundation of a house, Life Insurance is the foundation to any well structured financial plan, as it protects loved ones in the unfortunate case of premature death.  
Life Insurance, however, can be so much more than a death benefit. If structured properly,  an insurance policy can be of huge benefit to you while you are living as well. Financing purchases, receiving tax efficient retirement income, and leaving a legacy for family can all be done using a well structured Life Insurance Policy. 
There are two types of Life Insurance: Term and Permanent. Both are good, but they are very different. You can find a comparison below. 
We would love to help you figure out what insurances are right for you!
If you would like more information on insurances or would like to meet with us

Term Life Insurance

Permanent Life Insurance

  • Protects you for a specific term (5,10, 20 years).
  • Beneficiaries receive death benefit proceeds if insured dies within term.
  • Premium payments begin less expensive than permanent.
  • Premium payments increase with each renewal (highly expensive in later years). 
  • No longer available between the ages of 80 and 85. 
  • Has No Cash Values

  • Protects you for your entire life. (protection ends when you pass away).
  • Beneficiaries guaranteed death benefit proceeds when insured dies.
  • Premium payments begin more expensive than permanent.
  • Premium payments are level (cost does not change).
  • Always available.
  • Has Cash Values (if insured cancels policy, receives money from cash value)

Term Life Insurance:

Term Insurance can play a significant role in an overall financial plan. It protects income and brings financial safety to loved ones. This would definitely be the right choice for some people/families in their current situation. It can, however, be compared to renting an apartment. You pay regularly, your costs continually increase and at the end of the lease (insurance term) there is nothing to show for it. 
Everyone should have Life Insurance! If permanent does not work for you, or you are still in early stages of financial growth, term could be the way to go.  

Permanent Life Insurance:

Permanent insurance is sometimes compared to owning a home - you are always building equity in it.
There are two main types of Permanent insurance: Universal Life and Whole Life

Universal Life:
Combines insurance with an investment product.  They are tied to an interest rate or the anticipated performance of an investment vehicle.

Whole Life Insurance:
Properly structured whole life insurance (with dividends) is considered the most powerful and most predictable wealth building plan available because it comes with guarantees and is very tax efficient.

Whole life insurance offers level premiums and life insurance protection for as long as you live provided you pay the required premiums.  The "living benefits" of whole life insurance make it one of the most valuable and flexible financial planning tools available.  When properly structured, a dividend paying whole life insurance plan can become a financial tool and a cornerstone of a lifetime financial strategy.

The premiums you pay into your Dividend-Paying Whole Life Insurance policy create a growing cash asset, referred to as the policy's "cash value."  The money built up in the policy's "cash value" can be used for whatever, whenever you want, making your policy act as both a savings account and a life insurance policy at the same time. Structuring your life insurance policy this way also gives you the opportunity to receive annual dividends. 

Advantages of a properly structured Whole Life Insurance Policy:
1. Your principal is guaranteed.
2. Guaranteed growth every year.
3. Tax deferred growth.
4. Can be withdrawn tax free - now or in retirement.
5. Liquid and accessible.
6. Stable and competitive rate of return.

What can you use the "cash value" for during your life?
1. An emergency fund.
2. An education fund.
3. To finance purchases - vehicles, renovations, vacations, furniture, etc.
4. To pay off debt.
5. To build your retirement account.
6. To expand your business.

The "living benefits" provide a financial resource for you to use and enjoy during your lifetime.  These "living benefits" are present in addition to the legacy provided by the death benefit that will be left to your beneficiaries tax free. Properly structured life insurance is a powerful tax savings tool and a guaranteed savings plan.  The death benefit is an added bonus. 

Find out more about protecting your income with Critical Illness Insurance.

Learn to bring yourself and your loved ones security with Disability Insurance

Find out more about Mortgage Insurance and a good alternative.