Life insurance may be one of the most important purchases you'll ever make. In the event of a tragedy, life insurance proceeds can help pay the bills, continue a family business, finance future needs like your children's education, protect your spouse's retirement plans, and much more. If you're considering securing you and your family’s financial future, we would be happy to review your current situation and offer a few ideas on how you can protect it!
Term Insurance is the most affordable type of insurance when initially purchased, is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.
Loans, credit card debt, estate costs, the funeral... most people leave behind unpaid expenses when they die, expenses that, if left unattended, burden their families tremendously. Final expense coverage is life insurance that pays off these debts, ensuring that everything will be taken care of if you pass.
Universal Life Insurance was created to provide more flexibility than whole life insurance by allowing the policy owner to shift money between the insurance and savings components of the policy. Premiums, which are variable, are broken down by the insurance company into insurance and savings, allowing the policy owner to make adjustments based on their individual circumstances. For example, if the savings portion is earning a low return, it can be used instead of external funds to pay the premiums. Unlike whole life insurance, universal life allows the cash value of investments to grow at a variable rate that is adjusted monthly.
Whole Life Insurance is a life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured. The investment component accumulates a cash value that the policyholder can withdraw or borrow against. As the most basic form of cash-value life insurance, whole life insurance is a way to accumulate wealth as regular premiums pay insurance costs and contribute to equity growth in a savings account where dividends or interest is allowed to build-up tax-deferred.
Mortgage protection insurance, is a unique form of life insurance designed to pay off the policyholder’s mortgage if they pass away during the policy term. This helps beneficiaries eliminate significant debt, which can save them a lot of money each month. Plus, it gives them access to more equity in the home to borrow against or gain more proceeds if they sell it.
Return of premium (ROP) life insurance is a type of term life insurance policy that returns some or all of the premiums paid if the insured outlives the policy's term. ROP is an optional add-on to a term life policy, which typically lasts 10, 20, or 30 years. Without an ROP rider, the policy expires without paying a benefit if the insured is still alive when the term ends.
Guaranteed universal life (GUL) insurance is a form of permanent life insurance that pays out a guaranteed death benefit as long as you continue to pay your fixed premiums. You customize the advanced age at which the policy will expire, such as 90, 95, 100, 105 or 110 years old.
Guaranteed issue life insurance, or guaranteed acceptance life insurance, is a type of whole life insurance policy that does not require you to answer health questions, undergo a medical exam, or allow an insurance company to review your medical and prescription records.
Convertible term life insurance is a type of life insurance policy that allows the policyholder to convert their term coverage to permanent life insurance when their policy expires. This option is usually available at any time and without the policyholder having to undergo a medical exam or provide evidence of good health. The policyholder can typically convert to any type of permanent policy offered by their life insurance company, such as whole life or universal life insurance.
