Life Insurance
Protect your loved ones from financial ruin while you can.
Life Insurance
Life insurance is a financial tool designed to provide financial protection to individuals and their loved ones in the event of the policyholder’s death. There are several types of insurance available, each with its own unique features and benefits.
The cost varies based on your unique situation. The biggest factors that can affect your premium include:
• Your coverage amount and term length: Less coverage and shorter term lengths cost less.
• Your age: Younger people typically have lower rates.
• Your health status: Healthier people typically have lower rates.
• Your tobacco use: Non-smokers typically have lower rates.
A 10-year term policy with a death benefit of $1,000,000 for a non-smoker at age 25 is $58/mo and at age 45 it is $135/mo.
Term
Term life insurance offers coverage for a specific period, typically ranging from 10 to 30 years. It provides a death benefit to the beneficiaries if the insured person passes away during the policy term. This type of insurance is often chosen to cover temporary needs, such as mortgage payments, college tuition, or income replacement. Term generally offers the most affordable premiums but does not accumulate cash value.
Whole
Whole life insurance provides lifelong coverage. It guarantees a death benefit payout to the beneficiaries, regardless of when the policyholder passes away, as long as the premiums are paid. Whole also accumulates a cash value component over time, which grows tax-deferred. Policyholders may access this cash value through withdrawals or loans, which can be useful for emergencies or financial goals.
Universal
Universal life insurance is a flexible policy that combines coverages with a cash value component. It allows policyholders to adjust the death benefit and premium payments to suit their changing needs. Universal life insurance earns interest on the cash value, which is typically based on prevailing interest rates. Policyholders can also use the cash value to pay premiums, provided there is enough accumulated. However, it’s important to manage the policy carefully to ensure the cash value remains adequate to sustain the policy.
These are just a few examples of the types available. Other variations include variable life insurance, which allows policyholders to invest the cash value in various investment options, and indexed universal life insurance, which links the cash value growth to specific market indexes. It’s crucial to carefully evaluate your needs and consult with a financial advisor or insurance professional to determine the most suitable type for you and your loved ones.
Helping you make the most of your finances to secure your future.
