Life insurance is something that many people take for granted, not realizing its importance for their beneficiaries and peace of mind. There are several different types of life insurance. CPA, Jason Smith explains a few of the options.
Jason explained, “Whole Life insurance requires one to pay premiums throughout their life. In order to grow the cash reserve substantially, the premiums are higher than the fixed death benefit cost. Along with Whole Life, there is also Limited-Payment Whole Life. Limited-Payment Whole Life is essentially the same as Whole Life but is paid over a certain period, rather than up until death. With higher premiums, it guarantees the reserve to remain in power once they are paid out.
“Term insurance has premiums that are specifically for the death benefit; however, if death doesn’t occur within the term, the benefit is null and void. Usually, individuals can renew this policy or convert it into a cash value insurance plan.
“Universal Life, otherwise known as Flexible Premium Life’s premiums, are adjustable meaning that higher amounts can be paid if the owner deems fit, as well as smaller amounts if necessary.” Jason Smith continued, “The owner can also change the death benefit denomination at their discretion. There are also options for payout.”
Jason explained further, “Determining the right life insurance for your specific needs is essential. It’s best to work with a professional that has life insurance expertise to walk with you through the ins and outs of tax requirements and the best options that fit your needs.”
Jason Monroe Smith is a Certified Public Accountant with over 17 years of experience. He specializes in tax and financial planning. Having completed a Master of Business Administration degree and a Master of Science degree Jason Smith is a highly motivated professional that takes great pride in his tax preparation and unparalleled public accounting experience.
Jason Smith’s in-depth CPA work has provided relevant experience and enabled him to work as an independent contractor preparing taxes, providing public accounting services, and performing financial planning services.