Strategic Wealth Designers: Understanding life insurance benefits


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With uncertainty surrounding the future and how long we will live, life insurance can ensure that your loved ones are taken care of financially once you are gone. Life insurance involves premium payments that accumulate for your beneficiaries after you pass. Independent retirement planner Jon Jarboe of Strategic Wealth Designers joined us on the newscast to discuss types of life insurance and offer his advice on how to best structure it.

“The two main types of life insurance you’ll encounter are term and whole life,” Jarboe says. “Term life insurance only guarantees payment if the insured person passes within a specific time frame. This type of life insurance is less expensive between the two with lower premiums. Whole life insurance provides permanent protection and can play a significant role in retirement planning.”

There are two components that determine how well your whole life insurance is structured. The death benefit, which is how much your loved ones will receive when you pass and the cash value, the interest earning portion that can be withdrawn. To structure your life insurance properly, you want to have a low death benefit and high cash value. This lowers the cost of insurance and allows the cash value to grow.

“It is never too early to be thinking about life insurance and how to best invest your money for the future,” Jarboe says. “Term life insurance is generally used by those that are budget conscious. Whole life insurance is a great option for those that are young adults as it can allow the cash value to grow for a longer period. This is also a great option for pre retirees as the whole life insurance is a tax-free investment. It can provide supplemental retirement income through policy loans.”

Life insurance protects your beneficiaries and can be used as a long-term investment. To see additional stories surrounding business and economic news for Denver area, visit and if you have a question for Jon send an email to

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