COZART & EDWARDS, PA
102 N MAIN STREET
PO BOX 990
CREEDMOOR, NC 27522
919-528-4775

We will remain open for business Monday through Thursday from 8am to 5pm and continue to process tax returns as usual.  However, in light of recommendations from NCDHHS and CDC, we are asking that if you are feeling unwell or experiencing symptoms such as fever, cough and/or shortness of breath, please avoid coming into the office, even to deliver or pick up documents. Please avoid coming into our office for the safety of others if you are confirmed to have COVID-19 or have a family member at home that is confirmed to have COVID-19.  We have secure online options to send and receive documents to help limit contact during this time.  Our staff is happy to assist with this process.  To better function with our current environment, we ask that all client’s dropping off paperwork utilize our drop box.  For items too large to fit through the drop box slot, please use the basket located inside to right as soon as you open the door.  Please contact us with any questions.
 
Insurance Read Time: 3 min

Is Term Life Insurance for You?

Term insurance is the simplest form of life insurance. It provides temporary life insurance protection on a limited budget. Here’s how it works:

Chart one

When a policyholder buys term insurance, they buy coverage for a specific period of time and pay a specific price for that coverage.

Chart two

If the policyholder dies during that time, their beneficiaries receive the benefit from the policy. If they outlive the term of the policy, it is no longer in effect. The person would have to reapply to receive any further benefit.

Unlike permanent insurance, term insurance only pays. It does not accumulate a cash value. That’s one of the reasons term insurance tends to be less expensive than permanent insurance.

Many find term life insurance useful for covering specific financial responsibilities if they were to die unexpectedly. Term life insurance is often used to provide funds to cover:

  • Dependent care
  • College education for dependents
  • Mortgages

Would term life insurance be the best coverage for you and your family? That depends on your unique goals, needs, and circumstances. You may want to carefully examine the pros and cons of each type of life insurance before deciding what type of policy may be the best fit for you.

Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

Life insurance is not insured by the FDIC (Federal Deposit Insurance Corporation). It is not insured by any federal government agency or bank or savings association.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2020 FMG Suite.

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