Personalized insurance strategies from U.S. Bancorp Investments can help you protect what matters and may even build wealth.
Life insurance helps protect your loved ones and is an essential part of a sound financial plan. Should something unexpected happen to you, life insurance can help:
You can choose from a wide range of options available through U.S. Bancorp Investments, including policies that may help you build wealth in addition to protecting what you’ve already accumulated.
Term Life Insurance provides protection for a specified period of time, (e.g., 10 years, 20 years). It may be an attractive option for those who have limited budgets or a temporary need for life insurance.
With Whole Life Insurance, the death benefit is guaranteed by the claims paying ability of the issuing insurance company. Cash value accrues in the policy and can provide you with a source of potential cash flow in the form of loans or withdrawals. Tapping the cash value may reduce the policy’s death benefit. It is important to remember that whole life insurance is based upon the life span of the insured.
Universal Life Insurance provides greater flexibility than Whole Life Insurance by allowing you to make changes to premium payments and death benefits. Many universal life contracts can be structured with a death benefit guaranteed for a defined period of time or throughout your life (provided the required premiums are paid).
Variable Universal Life Insurance gives you the ability to invest the cash accumulated in your policy. Investment returns can potentially alter the premiums you need to pay into the policy. However, you may have to pay additional premiums if the investment options don’t perform as expected. Variable universal life policies may include a guaranteed death benefit. With this feature, premiums may be higher than normal, but as long as they’re paid, your policy won’t lapse during the guarantee period.
Long-term Care Insurance can be a cost-effective way to help protect your assets and your retirement against the high cost of long-term care.
This form of insurance is designed to cover expenses related to assistance needed in the event of a chronic illness or disability that leaves you unable to care for yourself for an extended period of time. Coverage can be provided for expenses related to care in a nursing home, assisted living facility, hospice center or in your own home. Whether you should purchase long-term care insurance depends upon your health, your ability to pay the premiums and your long-term goals.
If an illness or injury occurred during your working years, income needed to pay ongoing living expenses and save for your future could be interrupted. Disability income coverage is designed to replace a portion of income when sickness or injury prevents a person from working. It can also help protect your business.
Assessing life insurance needs is not an exact science. However, you can get an idea of how much insurance you may need by using our insurance calculator. Calculators should not serve as a substitute for professional advice.
Life insurance products and services are provided by U.S. Bancorp Investments. Here are common questions about life insurance.
How do I know if I need life insurance?
There are several reasons why you may need life insurance. Most important is to help ensure that you have enough money to help meet the ongoing financial needs of dependents such as your spouse, young children or elderly parents, should you die and no longer be able to provide for them. Also, your survivors may need funds to pay off bills and debts and cover other costs – like funeral expenses.
If you have no dependents or have adequate financial resources for them, the need for life insurance may be less obvious. But some people find coverage advantageous as a way to leave money to one or more beneficiaries while helping to minimize the potential tax consequences to an estate.
If you are a business owner, life insurance can play a crucial role in assuring the continuation of the business. If you have a substantial estate subject to tax consequences, proceeds from life insurance can be used to offset taxes due upon your death. You should consult with your accountant, legal professional and an estate planning advisor for more information.
What type of life insurance coverage is right for me?
If keeping costs low is your primary goal, term insurance can provide temporary coverage generally for the lowest cost. However, insurance is in place only for a stated term (such as ten or twenty years from the time the policy is issued). At the end of the stated period, the policy may expire worthless and you may not receive benefits. Term life insurance is less expensive to purchase when you are younger, but premiums can become much higher later in life.
If you prefer to have protection in place throughout most or all of your life, whole or universal life insurance may be a better option. These are forms of permanent life insurance based upon the life of the insured. While initial premiums are higher than with a typical term policy, it is possible for coverage to continue until death of the insured, and cash value may accrue in the policy on a tax-deferred basis that can be used to help meet financial needs during your life. When you are younger, a large portion of the premium goes toward the savings component of the policy. Later in life when the cost of insurance is higher, more of the premium goes toward insurance coverage. However, the death benefit can be in place no matter how long you live if premiums are paid.
I'm a single person. Do I need to have life insurance?
Life insurance proceeds can provide the cash necessary to help settle an estate and cover final expenses such as hospital or funeral costs. This prevents others from being burdened with expenses related to your death. If you are younger and have the potential to be married and have a family in the future, purchasing insurance now could be more cost effective than waiting.
Should I insure my stay-at-home spouse?
The duties of a stay-at-home spouse are comparable to (or more demanding than) other full-time positions. Although they don’t generate earned income, stay-at-home spouses have significant responsibilities, from cooking and cleaning to childcare and transportation. Replacing those functions would come with a cost. A surviving spouse can also benefit from insurance proceeds to help reduce the family’s debt load and build a financial cushion.
Why would I need to own an individual life insurance policy if I already have coverage through work?
The group policy coverage you obtain through your employer can be a great benefit but has one important limitation – it may only be in force during the time you are employed at that company. If you should be laid off or change employers, you may need to find another form of coverage. An individually owned life insurance policy helps assure that you maintain sufficient coverage regardless of your employment status. It also can be structured to allow coverage to remain in place after retirement. If you wait until you leave a workplace to purchase coverage, you may face greater expenses (premiums are higher for older individuals) and potential issues of insurability in the event of illness.
Who can I name as a beneficiary?
You can name immediate family members (spouse, children) as beneficiaries to help provide them with financial protection in the event of your death. But other relatives or close friends could be named as well. Depending on your financial circumstances, it may be beneficial to name your trust, estate or a charity as beneficiaries.
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U.S. Bank, U.S. Bancorp Investments and their representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.
Guarantees are based upon the claims-paying ability of the issuing insurance company.
For U.S. Bank:
U.S. Bank is not responsible for and does not guarantee the products, services, or performance of U.S. Bancorp Investments.
For U.S. Bancorp Investments:
Investment products and services are available through U.S. Bancorp Investments, the marketing name for U.S. Bancorp Investments, Inc., member FINRA and SIPC, an investment adviser and a brokerage subsidiary of U.S. Bancorp and affiliate of U.S. Bank.
Insurance products are available through various affiliated non-bank insurance agencies, which are U.S. Bancorp subsidiaries. Products may not be available in all states. CA Insurance License# OE24641.
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