Life insurance is designed to provide your beneficiaries (such as children, spouse or other dependents) with financial security when you are no longer there, such as using the insurance proceeds from the death benefit to help pay off any debt, maintain your family's style of living, ensure your children's education, and support your family's retirement and estate planning.

There's an old saying. You don't get life insurance for yourself. You get it for the people you love. The right life insurance not only offers financial security for your loved ones, but it also helps protect their future, your wealth, your business and your legacy. In short, it can protect everything you've worked for your entire life. It is a key part of any financial plan.

From the time we're young, we're told that working hard and saving money is the way to get ahead. While that's an excellent strategy for building wealth, it's not as simple as it sounds. Even though we don't know what's going to happen next week, next month or next year, we can help prepare for it with a risk management strategy that creates a foundation that offers you the confidence and control to focus on your life instead of your money.

With proper planning, such a foundation would:

Quickly provide financial benefits
Be shielded from creditors
Allow for multiyear planning
Offer income tax-free death benefits

So, what risk management strategy offers all this?

As a Citi client, you have access to a robust offering of insurance types, which Citi has curated by engaging top-rated carriers to ensure a wide range of financial needs can be met across nearly every phase of life. One of our experienced Citi Personal Wealth Management financial advisors and insurance specialists can help you select the appropriate coverage to address your unique needs.

Types of Life Insurance

One of the most critical aspects of life insurance is choosing the right type and amount of coverage. This will help ensure that the policy provides sufficient benefits to supplement your assets to meet your unique financial needs now and in the future.

The insurance proceeds from the death benefit:

Typically transfer free of federal income taxes and go directly to the beneficiaries, bypassing probate court
May pass to the next generation free of federal and state estate taxes, with proper financial planning and advice from a qualified tax professional and estate planning attorney
The two general types of life insurance are term and permanent, which differ in key ways.

Term Insurance

Term insurance provides a payment to the insured's beneficiaries when the insured dies. The insured chooses how long they want to maintain the coverage, typically between 10 – 30 years. Deciding what duration of term insurance to buy can be a big decision for you and your family. Premiums paid for term insurance cover only the cost of insurance. They do not generate cash value.

Permanent Insurance

Permanent life insurance is coverage that can last for the lifetime of the insured if the premiums are paid. The three major types are Whole Life, Universal Life and Variable Universal Life.

Whole Life insurance provides coverage for the insured's entire lifetime and builds cash value at a guaranteed rate, with possible additional dividends.
Universal Life insurance also builds cash value based on an interest rate and offers a death benefit.
Variable Universal Life insurance builds cash value based on market performance and has a separate death benefit. Keep in mind that a portfolio based on market performance is subject to market fluctuation and other investment risks.

Life Insurance

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