Perhaps the biggest worry we have as responsible adults is being able to provide for our families. During our lifetime, we dedicate most of our energy to protecting and providing for our loved ones. Once we're gone, we not only leave an emotional void, but a financial one as well. Will the family have enough income? Who will pay off our debts? Will our children have enough for their education?
Having a proper life insurance plan provides you with peace of mind, knowing that your loved ones will be protected. Our advisors work with you to design a plan that incorporates the following:
Setting a solid foundation. Financial experts agree that the foundation of any good financial plan includes life insurance. A well-designed life insurance program can improve and enhance your retirement, estate planning and family protection plans.
Understanding your goals. As your life changes, so will your needs. It's important that you periodically review your financial plan to be sure that your foundation is still solid. Your family situation, financial goals and personal health should determine the amount, type, and duration of your life insurance policy or policies. An individual Life Insurance Policy is normally purchased to accomplish the following goals:
- Support family members in the event a wage earner dies prematurely
- Compensate for the loss of a spouse who raises children
- Financially support parents, family members or children with special needs
- Repay any mortgage, personal or business debts
- Pay final expenses such as medical, burial, legal or probate costs after death
- Pay for educational or retirement needs
- Fund an inheritance or charitable bequest
- Pay for federal estate taxes that may be due upon death
Our Wealth Advisors can help you select an insurance policy to suit your budget as well as your personal needs and financial goals.
- Term Life Insurance – Provides coverage for a specific period of time or “term,” which can be 5 to 30 years. Policies may offer level premiums that do not increase for a set number of years. If the insured dies during the term of the policy, the death benefit is paid to the beneficiaries. There is no cash value accumulated for this type of policy.
- Universal Life Insurance – Combines the low-cost feature of a term life policy and the savings feature of a whole life policy. Premiums are flexible and are split between insurance and savings, enabling policy owners to make adjustments according to their financial situation. Accumulated cash value can be used to pay premiums.
- Whole Life Insurance – Offers protection with level premiums while accumulating cash value that can be withdrawn or borrowed against.
- Survivorship Insurance – Insures two people (usually a married couple) and provides benefits to heirs upon the death of the last survivor. This type of policy can be used to pay estate taxes or support surviving dependents.
For more information, call us at (877) 643-4344 or visit any conveniently located First Hawaiian Bank branch and ask to speak to a Wealth Advisor.
How Much Do I Need?
The amount of life insurance will vary depending on your personal and family situation. In general, life insurance needs are created whenever you have a change in life events such as a marriage, starting a family or business, or retirement. To determine how much life insurance you really need take this simple test and it’ll help you to develop a solid foundation for financial plan.