Life insurance may be one of the most important purchases you’ll ever make. To make it simple, life insurance coverage is needed to protect those who depend on your paycheck. Imagine what the financial impact would be to your loved ones in the event of your sudden death. Could your family afford funeral expenses or even maintain their existing lifestyle? Buying life insurance is an important decision and the right policy depends on your unique circumstances and financial goals. 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 -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.
Final Expense Insurance - Final expense insurance is a policy used to pay for unpaid expenses left behind upon the policyholder’s death. Such expenses could include funeral cost, medical bills and other debts.
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 - 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.