Life Insurance

It’s unwise to leave your family without sufficient means to support themselves after you’re gone. Now is the time to invest in their future, while you still can. No one knows what the future will bring, but you CAN take steps to prepare for it. Let’s go into more detail on our three main types of life insurance.

Term life insurance is a basic life insurance policy that offers simple death benefit protection without any cash value component. It is known for being the most affordable type of life insurance, making it particularly attractive to younger individuals who are in good health.

With term life insurance, you purchase coverage for a specific period, such as 10, 15, 20, 25, or 30 years, and in some cases even longer. The premium amount remains the same throughout the chosen term, and once the term is up, you can renew the policy. However, re-qualification is necessary as your age and health status may have changed.

Key Points for Term Life Insurance:

• Offers simple death benefit protection without cash value.
• Most affordable type of life insurance.
• Attractive to younger people in good health.
• Coverage for a specified period of time (e.g., 10, 15, 20, 25, or 30 years).
• Premium amount remains the same over the chosen term.
• Policy can be renewed but requires re-qualification.

Whole life insurance is a type of permanent life insurance coverage that offers stability and long-term financial protection. With whole life insurance, you lock in a premium amount that remains unchanged throughout the policy’s duration. This makes it an excellent option for individuals who want to adhere to a budget.

One of the benefits of purchasing this type of policy at a young age is that you will pay the same premium amounts over the years, regardless of advancing age or changes in health status. Additionally, whole life insurance includes a cash value component that grows over time on a tax-deferred basis. While the cash value initially grows slowly, it starts to accumulate more rapidly, providing a minimum guaranteed rate of return.

Key Points for Whole Life Insurance:

• Permanent life insurance coverage.
• Premium amount remains the same throughout the policy.
• Budget-friendly option.
• Same premium amounts throughout the years, regardless of age or health changes.
• Includes a cash value component that grows tax-deferred.
• Cash value grows steadily and has a minimum guaranteed rate of return.

Universal life insurance is a form of permanent coverage that combines a death benefit with a cash value component. What sets universal life insurance apart from whole life insurance is its flexibility. As the policyholder, you have the freedom to choose how much of your premium goes towards the death benefit and how much goes into the cash value.

The cash value can be accessed and utilized as needed, whether it’s for dealing with financial difficulties, funding a vacation, or preparing for retirement.

This feature provides individuals with greater control over their policy and the ability to adapt to changing financial circumstances throughout their lives.

Key Points for Universal Life Insurance:

• Permanent coverage with death benefit and cash value component.
• Offers flexibility in allocating funds between death benefit and cash value.
• Policyholder can borrow or withdraw cash value as needed.
• Can be used for financial emergencies, vacations, or retirement funding.