What is it? Life Insurance is a contract between an insurance policy holder and an insurer where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium payment, upon the death of an insured person.
Why Should I Have It? A death in the family by a wage earner could have a devastating effect on a family’s finances because when they go, their income is lost forever. How will the mortgage, medical bills, educational costs, and other daily living expenses be paid?
The Benefits of Life Insurance are many when the unexpected happens. Funds will be available to help ease the pain of losing a loved one so the bills can be paid taking some of the financial stress away. Life happens. It is important to have Life Insurance because we never know what lies ahead.
WHY should you consider LIFE INSURANCE?
TYPES OF LIFE INSURANCE
Insurance guarantees are based on the claims- paying ability of the issuing insurance company
Term:
A life policy that lasts for a specific number of years for a fixed annual payment where no cash value is accumulated. Terms available include 10 years, 20 years, and 30 years. When the term concludes, coverage concludes.
Permanent:
Permanent life insurance covers you for life and pays out when you die provided your premiums have been paid. These policies create a cash value that can grow and you may use later to withdraw or borrow from while you are still alive. Permanent life insurance has many options for the cash portion of the policy.
Whole Life Insurance:
Whole life insurance coverage uses fixed premiums and a cash value that accumulates over time. This death protection policy will remain intact for your entire existence provided that the required premium payments are met.
Universal Life Insurance:
Universal life insurance covers your entire life and gives you more flexibility to make changes to your premiums and death benefit to fit your financial circumstances over time. These types of policies may be more expensive than others that don't have a cash value with the death benefit.
Variable Life Insurance:
Variable life insurance may offer you the opportunity to apply your cash value to separate investment accounts that can be used to help pay your premiums or add to your death benefit. This policy involves more risk as there is no guarantee that your investment accounts will increase. Although, companies may set up a minimum death benefit to ensure you have some money to pass down.
How We Can Help
We can help you determine your life insurance needs and suggest plans that are best suited for you and your family's needs. We have access to an extensive list of insurance companies with a wide variety of options, and plans. We can help you find a plan to protect your family if something unforeseen should occur.
Life Insurance Myths:
Life insurance can be a complicated topic. The best way to weed out the misinformation about life insurance is to learn the facts.
* Forbes: Myths About Life Insurance
*Direct quotes taken from:
* Carter, Erik. "7 Myths About Life Insurance." Forbes. Jun 6, 2014.
https://www.forbes.com/sites/financialfinesse