Life insurance planning

Life insurance protects your loved ones from financial hardship in the event of your death. It can help them meet a range of important needs, like replacing income, managing estate taxes, planning for business succession, or supporting your philanthropic goals. It can play a key role in protecting your family and preserving your legacy.

A common rule of thumb is to have enough to cover 10-15 times your annual income and to also take into account debts and future expenses like your mortgage or children’s education. Of course, the right coverage ultimately depends on your family situation, financial responsibilities, and long-term goals. A well-structured policy can provide the support your loved ones need and help cover important obligations when it matters most. Speak with a UBS Financial Advisor to explore what may work for your financial goals.

Term life insurance typically has simpler terms and coverage lasts for a specified period time, usually between 10–30 years (as opposed to your entire lifetime). It also has a lower cost and no cash value. Whole or permanent life insurance covers your entire lifetime, builds cash value, can sometimes be used as an investment, and usually costs more overall.

The cost of life insurance depends on several factors, including age and health (the younger and healthier you are, the less expensive it is), how much you’re covered for, how long you’re covered for and lifestyle risks (e.g.., smoking, or dangerous jobs or hobbies). It is possible to lock in a lower premium earlier in life, but you may have to readjust your policy if the term expires. Make sure you know your policy before you buy.

Your coverage needs can vary depending on your life stage and goals. Whether you're looking for protection for a set period or lifelong coverage, it’s important to match the policy duration with your overall financial strategy, something our Advisors can help you navigate within your overall financial plan.

Term and permanent life insurance offer different benefits. The right policy depends on your priorities, such as cost, flexibility, tax efficiency, and how the policy fits within your broader wealth plan.

Usually death benefits are income tax-free for beneficiaries. However, if the policy is part of an estate or transferred for value, then estate or inheritance tax rules may apply.

Yes, it is possible. While pre-existing conditions, past medical history, and being in your 50s-70s can limit your options, you can still pursue a simplified issue or guaranteed issue policy (both of which don’t require medical exams). However, it’s important to understand that your premiums may be higher and coverage amount lower than traditional plans, depending on which policy you choose.

Policy ownership determines how life insurance payouts are taxed, managed and transferred. Depending on your broader wealth strategy, you can hold the policy as an individual, through a trust, or within a business. Our Financial Advisors can help you determine the most appropriate approach for your goals.