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Illinois Financial Advisors for Insurance Strategies

Aurora IL life insurance strategy planning

Wealth Advisors for Life Insurance Decisions in Naperville and the Chicago Area

As you work throughout your life to build your wealth through your employment, investments, and other means, you should take steps to protect your assets in case the unexpected happens. At Brookstone Wealth Strategies, we have more than 30 years of wealth advising experience and a thorough understanding of life insurance policy options that are beneficial under different circumstances. As we review your current financial situation and your goals for the future, we will advise you on an insurance strategy that fully considers your personal needs and the costs and benefits of coverage where it might be appropriate.

Understanding Life Insurance Options

In general, a life insurance policy helps to provide for your spouse and other surviving family members who depend on you for financial support in the event of your death. Depending on your means, your standard of living, and your family's anticipated needs, you can purchase different amounts and different kinds of policies, including:

  • Term life insurance: Term life insurance provides coverage for a specified period of time. If you die within this time, your beneficiaries will receive the death benefit. You may choose to purchase term life insurance until your children are able to support themselves, or until you and your spouse have paid off your mortgage, for example. Term life insurance premiums are often fairly affordable, especially at a younger age, and you may have the option to renew the policy at an adjusted premium rate when the initial term ends.
  • Whole life insurance: Whole life insurance is a form of permanent coverage, meaning the death benefit remains in effect throughout your life rather than for a limited term. These policies come with fixed premiums that are usually higher than those for term life insurance, and you must continue to pay them for the policy to remain in force. However, in addition to the death benefit, your premiums also contribute to an accumulated cash value that generates tax-deferred interest, providing you with assets that you may choose to draw upon during your lifetime.
  • Universal life insurance: Another permanent life insurance option is universal life insurance. This type of policy also has a cash value component, but differs in some important ways from both term and whole life insurance.

How Does a Life Insurance Policy Help?

Depending on the type of policy and how you use it, life insurance offers several potential benefits. Firstly, your policy's death benefit can provide crucial support for the dependents you name as beneficiaries. The benefit may help to cover your funeral and burial expenses, outstanding medical bills and other debts, and estate taxes owed after your death, as well as the general living expenses of your spouse, minor children, or dependent adult children. Life insurance can even benefit an ex-spouse after a divorce if a policy is established so that alimony or child support continues to be paid in the event of the payor's death.

The cash value of a permanent life insurance policy also has many possible uses. Because you can withdraw or borrow from it during your lifetime, life insurance can be a form of retirement savings or a source of emergency income. However, it is important to note that withdrawals and unpaid loans may decrease the amount of the death benefit. As you get older, it may also be a good idea to use the cash value to purchase additional death benefits, because the cash value is usually retained by the insurance provider upon your death.

You may also choose to purchase riders that add other benefits to your policy. For example, a disability rider can provide income if you become disabled and unable to work, and an accelerated benefit rider allows you to use part of the death benefit to pay for long-term care costs or medical expenses related to a chronic illness.

Contact a Wheaton Insurance Strategy Advisor

With our guidance, you can make well-informed decisions regarding how best to use life insurance as part of your larger investment and wealth management strategy. Contact us at 630-741-4491 to learn how we can help and to schedule an appointment to discuss your situation further. We serve local clients in Warrenville and the surrounding areas, including Naperville, Lombard, Downers Grove, Wheaton, Aurora, Batavia, DuPage County, and Kane County, as well as throughout the Chicago area, Illinois, and across the U.S.

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