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Life insurance provides your family with protection from unexpected calamities. Without insurance, your untimely death could cause severe financial consequences for your family.

Safety and security

Maintaining adequate life insurance ensures that, when you pass, your dependents or beneficiaries will have the financial resources necessary to help protect their futures. However, buying life insurance can be complicated.

To determine how much protection you need, you should consider a number of factors, such as immediate needs, funds for a re-adjustment period and ongoing financial needs. In addition, determining what type of insurance best suits you (term versus permanent, for example) is just as important, as it depends on your personal circumstances.

Term insurance

Term insurance provides protection for a specific period of time (when your children are young, for example) and pays a benefit only if you die during the term. Certain types of term insurance can be renewed when you reach the end of the specified time period. Premiums generally increase as you grow older and continue as long as stated in the policy. Two popular types of term insurance include level-term and annual renewable term.

Permanent insurance

Permanent insurance, unlike term insurance, may enable you to accumulate a cash value while you are alive and offers a permanent death benefit provided you pay premiums and maintain the policy. Permanent policies have the ability to build cash value, which can be used to help pay premiums, take loans against, or for withdrawals.

However, using a policy’s cash value could reduce the death benefit, shorten or cancel a guarantee or cause the policy to lapse, and may have tax consequences. There are three types of permanent life insurance: whole life, universal and variable life.

Security and peace of mind for you and your family.

With the proper life insurance, you can rest assured that your family will be protected. For more information, contact a Waddell & Reed financial advisor today.

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Insurance products are offered through insurance companies with which Waddell & Reed, Inc., has sales arrangements.

This information is provided for informational and educational purposes only. Waddell & Reed believes the information has been obtained from sources considered to be reliable, but does not guarantee the accuracy of the information provided. This information is not meant to be a complete summary or statement of all available data necessary for making financial or investment decisions and does not constitute a recommendation.

Please note that the information provided may include references to concepts that have legal, accounting and tax implications. It is not to be construed as legal, accounting or tax advice, and is provided as general information to you to assist in understanding the issues discussed. Neither Waddell & Reed, Inc., nor its Financial Advisors give tax, legal, or accounting advice.

This information is not meant as financial or investment advice pertaining to your personal situation. The selection of appropriate investment, insurance or planning options and/or strategies should be made on an individual basis after consultation with appropriate legal, tax and financial advisors. Nothing contained herein is intended as a solicitation or an offer to buy or sell any product or service mentioned and they may not be suitable for all investors.

Securities offered through Waddell & Reed, Inc., Member FINRA/SIPC, are not insured by FDIC, NCUA or any other government agency, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal. Insurance products are offered through insurance companies with which Waddell & Reed has sales arrangements. Guarantees provided by insurance products are subject to the claims-paying-ability of the issuing insurance company.

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