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| Life Insurance Strategies |
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| Purchasing life insurance may be an important strategic step in protecting a portfolio. Life insurance focuses on helping to protect and transfer the wealth you have accumulated in other investment activities. |
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| Life Event Strategies |
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| The following life events can be a good time to make an initial purchase or review your current coverage. |
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| Event |
Action |
| Home purchase or home improvement |
Cover mortgage and/or home equity loan |
| Birth/adoption of a child |
Cover increased family daily income needs and new debts |
| New job |
Replace any group coverage gaps and increase your coverage amount for your new salary |
| Marriage |
Review needs for income, estate, and home expenses |
| College education planning |
Cover future college expenses |
| Estate planning |
Cover funeral and estate expenses |
| Semi-annual financial planning |
Review current coverage |
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| Protection and Wealth Transfer Strategies |
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| You are your family's greatest asset. A sudden loss of income could place unnecessary hardship on your family. Consider the lifetime earnings potential of some hypothetical households: |
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| Estimated career earnings at age 65* |
| Current Age |
Annual Salary $50,000 |
Annual Salary $100,000 |
Annual Salary $200,000 |
| 35 |
$2,378,771 |
$4,757,542 |
$9,515,083 |
| 45 |
$1,343,519 |
$2,687,037 |
$5,374,075 |
| 55 |
$573,194 |
$1,146,388 |
$2,292,776 |
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| When buying life insurance to replace lost income, there's no substitute for a thorough analysis of your personal situation. Fidelity1 can help you decide on an adequate level of life insurance protection. |
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| Proceeds from your life insurance policy are not generally subject to income tax and the full-face amount of your policy is paid directly to your beneficiaries. Consult a financial or tax advisor for your specific financial situation. |
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| Ensure that you have enough insurance to cover any mortgages or home equity loans. Typically enough insurance is purchased to pay off the principal amount of the loans, not future interest. |
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| Preserve your savings and investments and help your family keep up with current and future living expenses. |
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| As college costs continue to rise, the need for a plan becomes more and more important. Learn about how Protecting Your College Plan with Term Life Insurance can cover college tuition in the event of an untimely death. |
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| Always consult your estate planner or tax advisor when making estate planning decisions. |
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