Reader’s Question:

Hello there. I would like to know how single premium life insurance in Connecticut works, or if it works at all. How is it different from the other kinds of life insurance?

Ellen Summer

Bridgeport CT

We have already discussed several kinds of insurance policies here – from whole life, to variable life insurance. All of these life insurance policies aim to provide security for your future, even up to death, which is an inevitability we all must accept. However, before this time comes, we can avail ourselves of life insurance products that can help ease the situation of our loved ones when we pass away through death benefits.

Now, to help you with the single premium life insurance in Connecticut, we must first define it. Here, the insured person who avails this is actually paying for only one premium in one up-front payment. This will work well for people who have an adequate amount to fund it from a salary bonus or a cash gift during a special event like wedding, birthday or graduation. It may be coming from our own savings or even a good profit from a business venture. Wherever it will come from, the idea here is to set a relatively higher amount to avail it.

With this type, you no longer have to worry about missing payments for the succeeding years. You do not need to regularly set aside money for you to settle payments of regular premiums. You will have a peace of mind that your insurance is fully funded, fully secured and covered and you will just wait for the time you can reap its rewards.

Another thing you can take advantage of in this kind of policy is that when the time comes you are undergoing a rough financial situation, you can loan from it. So it would be better for you to start as early as possible so that the interests can build up and the death benefits can be higher when this time comes.

Also, it offers a tax break, which means you do not have to worry about paying taxes for it.

See you again, Ellen!

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