Page 23 - Abacoa Community News- May '24

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Science On The Cutting Edge
from page 22
The Max Planck Florida
Institute for Neuroscience a not-
for-profit research organization, is
part of the world-renowned Max
Planck Society, Germany’s most
successful research organization
with 86 institutes worldwide.
Since its establishment in 1948,
31 Nobel laureates have emerged
from the ranks of its scientists.
As its first U.S. institution,
MPFI provides exceptional
neuroscientists with the freedom
and technology to answer
fundamental questions about
brain development and function.
MPFI researchers employ a curiosity-driven approach
to science to develop new technologies that make
groundbreaking scientific discoveries possible.
Register for the event at mpfi.org/explore.
To learn more visit https://www.mpfi.org/.
Financial Focus ®
Term Vs. Perm: Which Is
Right For You?
By Sally Sima Stahl
If you’ve been thinking
about life insurance,
especially if you have
family, loved ones, or
anyone who depends
on you financially, you
might be curious about the
different kinds of policies
available. Which type is
right for you?
Essentially, you can
look at two main categories of life insurance: term and
permanent.
Term insurance is a pay-as-you-go option that covers
a specific amount of time, usually 20 years or fewer. Term
insurance benefits are paid to your beneficiaries free of
federal income taxes if you pass away during the coverage
period, but there’s no opportunity to build cash value.
Permanent insurance, such as whole life or universal
life, offers coverage for as long as you pay the premiums
and, in addition to providing a tax-free death benefit,
also offers a chance to build equity, or cash value, on a
tax-deferred basis.
When determining which type of insurance is appropriate
for your needs, you’ll want to consider these factors:
• Cost – Term insurance is generally affordable for
most people, which is why it may be particularly suitable
for parents and young adults who may be at the beginning
of their careers. Permanent insurance is typically more
expensive, largely because it is meant to last for one’s
lifetime and some of the premiums go toward building cash
value in the policy and paying for other features. Generally,
the younger and healthier you are when you purchase
permanent insurance, the lower your rates will be.
• Length of time insurance is needed – If you think you
will only need life insurance for a certain period — perhaps
until your children are grown — you might lean toward
term insurance. If you feel the need for life insurance for
other goals throughout your lifetime, for whatever reason
— you might have a special needs child, or perhaps you
want to use your policy to help pay for retirement, or you
wish to include the policy as part of your legacy and estate
plans — you may want to consider some type of permanent
insurance.
• Investment preferences – You may have heard the
phrase “buy term and invest the difference.” Essentially,
this just means that an investor could purchase low-cost
term insurance, and then invest the money that was saved
by not getting permanent insurance. This can be a valuable
strategy in some situations, but people often don’t actually
invest the difference. A permanent insurance policy, through
the payment of premiums, may result in a steady buildup
of cash value or continued contributions to the policy’s
investment components. For many people, this discipline
is helpful.
• Future insurability – If you have health issues, it
could become difficult to get permanent insurance after
you’ve reached the end of a term insurance policy. (Some
term insurance policies do offer the opportunity to convert
to permanent coverage, usually without the need for a
medical exam.) You could avoid this potential problem by
purchasing permanent insurance when you are still young
and healthy.
Ultimately, you will need to weigh the various factors
involved in the permanent-versus-term decision. You also
might benefit from consulting a financial professional, who
can evaluate which type of insurance is most appropriate for
your situation. But whether it’s term or permanent, make
sure you have the coverage you need to protect yourself
and your loved ones.
This article was written by Edward Jones for use by
your local Edward Jones Financial Advisor, Edward Jones,
Member SIPC.
Edward Jones is a licensed insurance producer in
all states and Washington, D.C., through Edward D.
Jones & Co., L.P., and in California, New Mexico and
Massachusetts through Edward Jones Insurance Agency
of California, L.L.C.; Edward Jones Insurance Agency of
New Mexico, L.L.C.; and Edward Jones Insurance Agency
of Massachusetts, L.L.C.
Edward Jones, its employees and financial advisors
cannot provide tax advice. You should consult your qualified
tax advisor regarding your situation.
Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.