Term Life Insurance Coverage

TERM LIFE INSURANCE

option-insurance-services-14Life insurance, for many, feels like just another expense – until you really need it. But even if you have a budget that is steadfast, term life insurance can be a cost-effective answer to get the insurance coverage you need now at an affordable price.

Term Life can be a very affordable interim solution

People often delay purchasing life insurance because they think it is more than their budget can handle, and they often overestimate how much it will cost. However, term life can be an affordable way to get the coverage you need – today.

Does Term Life Insurance make sense for me?

Begin by asking yourself whether your family would have enough to live on, pay off debts (including a mortgage and funeral expenses), and pay for costs to raise and educate your children if you were gone. Remember that when you die, your paycheck stops, leaving a significant difference between your expenses and assets. Fortunately, this is where term life insurance can help fill the gap.

As you age, it gets more expensive to buy life insurance. Moreover, certain health conditions can make premiums increase – or worse, make it difficult to qualify for life insurance coverage at all. For the same price of a weekly specialty coffee drink, you’d be surprised at how much term coverage you could afford.

How Does Term Life Insurance Work?

Coverage with a term policy lasts only for a specific time period (often offered at 10-, 20-, or 30-year terms), with no cash value accruing. With once the term is over, the policy coverage (and required premiums) will end.

Also, consider adding policy riders that will allow you to access the policy death benefit in the event of a terminal illness or even convert a portion of your term policy into a permanent policy (such as whole life or universal life).

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WHAT IS WHOLE LIFE INSURANCE?

Whole Life Insurance is a type of permanent life insurance, which provides a savings or “cash value” component, it covers you for as long as you live. To receive the death benefit, you must pay the same amount of premium for a specific period.

According the Insurance Information Institute, Whole Life Insurance is the most common type selected among individuals choosing life insurance plans.

WHAT ARE THE BENEFITS OF WHOLE LIFE INSURANCE?

Fixed Premium and Death Benefit

The premium and face amount will not fluctuate as you age, and you will be well equipped to inform your beneficiaries of what to expect upon your death.

Cash Value

The presence of guaranteed cash values makes a whole life insurance policy worthwhile because you can borrow against your cash value or surrender your policy to get the cash value in hard cash.

Guaranteed Rate of Return

The cash value is basically an investment account inside your whole life insurance policy that grows at a guaranteed rate over time.

IS WHOLE LIFE INSURANCE RIGHT FOR ME?

Whole life insurance is made to fulfill an individual’s long-term goals and it is important that you keep it in force for as long as you live.

Whole life insurance is highly suitable for long-term responsibilities like a surviving spouse’s income needs and post-death expenses.

If you are a person who finds comfort in stability, a Whole Life Insurance policy may be right for you.

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WHAT IS UNIVERSAL LIFE INSURANCE?

A Universal Life Insurance policy protects the insured with a guaranteed death benefit. Additionally, this type of policy includes a cash value savings component. Over time, the cash value of the policy will increase on a tax deferred basis.

 

WHAT ARE THE BENEFITS OF UNIVERSAL LIFE INSURANCE?

Death Benefit

With a universal life insurance policy, you have two options: level or increasing.

With the level death benefit, the amount the policy pays out stays level throughout the life of the policy, and the policy will pay out either the death benefit or the cash value, whichever is greater. With an increasing death benefit, both the cash value and the death benefit increase over time, and both are paid out as part of the death benefit. 

Guarantee Interest Rate

With universal life, the insurance company sets a minimum interest rate based on the contract for the policy (usually a low 2-3%). If the insurance company’s overall portfolio gains in value, then part of the increase is added to the cash value of the company’s universal life policies, up to the maximum percentage amount listed in the policy contracts. If the company’s portfolio does not have a gain, or if it takes a loss, the insurance company is still obligated to pay the minimum interest stated in the policy contracts.

Universal life insurance provides an additional level of security with a guaranteed interest rate. The interest rate is guaranteed to never fall below a specified level on the growth of funds in the policy’s cash value component.

Tax Deferment

The cash value account is tax deferred and permits loans against the cash value. The interest is adjusted monthly, allowing the cash value to grow faster.

Flexibility

Universal life insurance offers you the flexibility to increase or decrease the death benefits as needed, based on your situation. You may skip premium payments if there are enough funds built up to cover the cost of insurance.

 

IS UNIVERSAL LIFE INSURANCE FOR ME?

Universal life insurance gives you many options to customize your coverage. Depending on the type of policy, you may be able to choose where your cash accumulation goes. Many people use this type of policy to supplement their retirement income needs by taking loans against the policy after retirement.

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WHAT IS FINAL EXPENSE LIFE INSURANCE?

Final Expense Life Insurance is a type of permanent life insurance, it covers you for as long as you live, and premiums are paid.

WHAT ARE THE BENEFITS OF FINAL EXPENSE LIFE INSURANCE?

Fixed Premium and Death Benefit

The premium and face amount will not fluctuate as you age.

Final Expense life insurance is a Whole Life insurance policy. It does have a savings/cash value component, the cash value accumulation is extremely slow.

Guaranteed Insurance

This type of insurance is designed for people aged 40 to 85 years old that may have been declined for health reasons in the past. No medical examinations or medical underwriting requirements.

IS FINAL EXPENSE LIFE INSURANCE RIGHT FOR ME?

This coverage can pay for the casket, funeral service, visitation/viewing, hearse, digging and filling the grave, the actual cemetery plot, or burial vault or grave liner, minister, headstone, flowers, and other expenses related directly to named insured’s funeral.

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