Which life insurance product do you need to proctect your loved ones? It’s a good idea to consider
insuring both parents, even if only one is a primary wage earner. This can help ensure that the surviving parent can pay for
any increases in the cost of child care if the parent primarily responsible for child care dies.
Term Life Insurance Whole Life Insurance Universal Life Insurance Let us help you explore your options today!
Term Life Insurance
In just minutes you and your family
can enjoy peace of mind for the next 10, 15, 20 or 30 years. Simply request a personal quote to
discuss your needs and budget and apply for coverage today.
Life insurance helps to protect loved ones who are supported by you in the event
of a death. It helps protect the people who depend on you for financial support by replacing your lost income when you die
to help pay expenses that you normally would have covered such as mortgage payments, bills, childcare
or college tuition.
Term Life Insurance
Whole Life Insurance
Universal Life Insurance
Term life insurance is usually the least expensive and the simplest form of insurance
to understand. There are two basic types of term life insurance policies—level term and decreasing term. Level
term - death benefit stays the same throughout the duration of the policy and decreasing term - death benefit drops, usually
in one-year increments, over the course of the policy’s term. Term life insurance is purchased for set for a period
of time, as little as one year or thirty years and may include an option to renew. Most term policies have no other benefit
provisions. If you pass away within the term period of the policy is in force, your beneficiary receives the face value of
the life insurance policy only. It does not build up cash value so you miss the tax deferred growth that you receive when
you own a permanent life insurance policy. Premiums are paid throughout the policy’s term and increases at the end of
each renewal period if it is renewable term.
There are three major types of whole life or permanent life insurance—traditional
whole life, universal life, and variable universal life, and there are variations within each type.
Whole life, is purchased to last until the insured passes away. As long as you pay the premiums you can keep
this insurance and it pays a death benefit whenever you die—even if you live to 100! Premiums are higher than
Term insurance and can build a cash value—money that you can borrow against and in some instances, withdraw to help
meet future goals and enjoy favorable tax treatment. Cash value generally grows on an income-tax deferred basis; that means
that you pay no taxes on any earnings in the policy so long as the policy remains in force.
Universal life (UL) is more flexible than whole life because the death benefit and usually
the premium payment are flexible. The policy owner may change the death benefit from time to time with evidence of insurability
for increases and decrease without surrendering the policy. Premium payments can be flexible from a minimum amount to
cover guarantees to the maximum amount IRS rules allow. The insured can alter the death benefit by how the universal
life policy is funded. By varying the amount or timing of premium payments it increases the risk if the cash value or premium
payments are not enough to cover the cost of insurance (COI) the UL will lapse. There are several types to consider: Single
Premium paid by a single payment; Fixed Premium allows periodic payments within a shorter period of time than the policy is
in force; and Flexible Premium that can change with each payment.
Who purchases this type of insurance?
Temporary need of short term to mid term obligations such as cost of education during college years
Limited
budget with need for large amount of insurance such as 30 year mortgage
Business needs to cover the life of a key
employee
Support someone such as an elderly parent
Single parents
Long term need for undetermined amount of time
Interest in the tax-favored treatment of cash value
Cash
value provides funds for future goals such as education or retirement
Side investment fund earns at a current interest rate
Best features of term and permanent insurance
Partial
surrender provision
Guaranteed minimum rate
Loan provisions
Cash values
TERMS:
Decreasing term life insurance- Term insurance, the face value
of which decreases each year over a slated period. Family income and usually mortgage cancellation are decreasing term insurance.
Joint
whole life insurance policy - One insurance policy that covers two lives and that generally provides for payment of the proceeds
at the time of the first insured's death.
Level term life insurance- The type of life insurance that provides
protection for a specified period of time only.
Whole life insurance company- The type of life insurance that provides
protection for a specified period of time only.
