Life insurance is a financial safety net that provides a tax-free payout to your beneficiaries in the event of your passing, helping cover expenses like funeral costs, debts, and income replacement.
How much life insurance do I need?
It depends on your income, debts, future expenses, and your family’s needs. A common rule of thumb is 10-15 times your annual salary.
No, life insurance payouts are generally tax-free to beneficiaries. However, policies with cash value growth may have tax implications.
Annuities are backed by insurance companies, not the FDIC, but state guaranty associations offer some protection. Choosing a financially strong insurer is key.
If your annuity includes a death benefit, remaining funds can be passed to beneficiaries. Otherwise, payments may stop unless you have selected a joint-life or survivor benefit.