Minnesota Life Insurance

Buying Life Insurance in Minnesota

From: Joe Swanson Financial Advisor in Minnesota

Life Insurance for Living
More than two-thirds of American families include life insurance in their financial strategies.1 Many of these people probably think of life insurance as a source of ready cash in the event that a primary wage earner's death creates a financial hardship – and you should, too.
You must have a need for a death benefit in order for life insurance to be a suitable purchase. But there are some less common uses for permanent life insurance that you may not have considered.
Over time, your need for a life insurance death benefit may change – perhaps because your children are grown and no longer depend on your income, or your mortgage is almost paid off. If these events occur, a permanent life insurance policy might play a different role in your life.
Supplemental Retirement Income
A permanent life insurance policy has the potential to accumulate cash value on a tax-deferred basis. After a period of time, you may be able to withdraw any cash value up to your cost basis in the policy, which is the amount of premiums paid, without incurring any income tax liability.2
When your cost basis has been withdrawn, you may be able to borrow against the death benefit. However, the amount of any outstanding loans plus any interest will be deducted from the death benefit after the insured has died. To be continued...

• Joe Swanson, Financial Advisor Minnesota
• 11100 Wayzata Blvd, Suite 161
• Minnetonka, MN
• 55305
• Phone: (952) 277-4259Toll Free: 800 277-7095
• Fax: (952) 277-4301
• www.joeswanson.com
• swanson.joe@principal.com