Life Insurance

What is Life Insurance?

Life insurance pays out a sum of money either on the death of the insured person or after a set period of time.

"I already have life insurance through my job"

That's great! However, the coverage through your job might not be enough. Also, should you ever lose your job (layoffs, company goes under, you move to a different state, you take a different job, etc...) the life insurance you have with your job will probably not continue. Which is why it's smart to have a plan that is independent of your job so it will be always be there for you, regardless of where you work.

Common Types of Life Insurance

Term Life Insurance

Term life insurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time, (10, 15, 20 years) the relevant term. After that period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or obtain further coverage with different payments or conditions. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.

Whole Life Insurance

Whole life insurance, also called Permanent life insurance, is a life insurance policy that remains in force for the insured's whole life. The premiums typically will not go up throughout the life of the policy and the death benefit will not go down. Additionally, whole life adds a cash building feature where a cash account is created inside the policy. This account grows during the life of the policy and is available to the insured to borrow from if there's ever a need for cash.

Universal Life Insurance

A type of permanent life insurance. A bit more complicated than standard whole life. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance (COI) charge, as well as any other policy charges and fees which are drawn from the cash value, even if no premium payment is made that month. Interest credited to the account is determined by the insurer, but has a contractual minimum rate determined by the insurance company. When an earnings rate is linked to a financial index such as a stock, bond or other interest rate index, the policy is a "Indexed Universal Life" contract. Indexed Universal Life is a great tool for leveraging savings into a retirement planning tool for tax free retirement!

Contact us to learn more about the right life insurance plan for you!