The term "Live, Die, or Quit" is often used to describe the three possible outcomes of a life insurance policy. If you live, your beneficiaries will receive the death benefit when you die, or a policy can be used as a supplement if you needed Long Term Care or have a disability insurance policy. If you die, your beneficiaries will receive the death benefit immediately. And if you quit the policy, you will receive a refund of your premiums, minus any surrender charges (with specific policies).
There are several benefits to life insurance, including:
- Financial protection for your loved ones: If you die unexpectedly, your life insurance policy can provide financial support for your spouse, children, or other dependents. This money can help them pay for mortgage payments, college tuition, and living expenses. If you, as the policyholder, needed to be in a long-term care facility, there are policies that would help supplement the cost.
- Tax benefits: The death benefit from a life insurance policy is typically not subject to income tax and can be a significant financial advantage for your beneficiaries.
- Retirement planning: If set up correctly, life insurance can supplement your retirement savings. A portion of the death benefit could pay for long-term care expenses or to leave a legacy for your loved ones.
An LPL Financial advisor at Dixon Financial Group, LLC, can help you determine if life insurance is right for you, and we can help you choose the right policy for your needs. We can also help you understand the different types of life insurance policies and the benefits of each.
- Help you assess your financial needs: By determining how much life insurance you need to protect your loved ones. We can also help you factor in your financial goals, such as retirement planning or leaving a legacy.
- Help you choose the right policy: Many types of life insurance policies are available, each with advantages and disadvantages. We will help you choose the best policy for your needs and budget.
- Help you understand the terms of your policy: The terms of your life insurance policy can be complex. Helping you understand the terms of your policy is part of our service to you.
- Help you make changes to your policy: Your life insurance needs may change over time, and we can help you make changes to your policy as your needs shift.
If you are considering purchasing life insurance, please speak with one of our LPL Financial advisors. Getting you the right coverage for your needs is our goal.
The 'Live, Die, or Quit' concept is a helpful way to consider life insurance. It reminds us that there are three possible outcomes for a life insurance policy and that each outcome has its benefits. By understanding the different outcomes, we can make an informed decision about whether or not life insurance is right for us.
Please 'share' this information with friends and family. We aim to ensure you and those you care about are protected. Contact our office today to request a consultation; we look forward to hearing from you.
David S. Dixon, CFP®
Jacob S. Bierstedt, CFP®, ChFC