There are many kinds of life insurance, but they generally fall into two categories: term insurance and permanent insurance.
Term insurance 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.
In contrast, permanent insurance provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time.
It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances and financial goals.
But remember, the best way to figure out the amount and type of life insurance that makes sense for your particular situation is to meet with a qualified and licensed life insurance professional.
Most people are familiar with the basics of life insurance. You pay a premium and your family receives a monetary payout when you die. But there is more than one type of life insurance policy that can protect your family’s financial future. You must decide which type of life insurance is right for your needs.
What is term life insurance?
Term life insurance is the most affordable type of life insurance. This makes it popular among young adults who are just starting families of their own. With a term life policy, you select the number of years—the term—in which your policy will be active. You may find monthly premiums to be affordable. But, keep in mind that dependents will receive a payout only if the policyholder dies within the specified term.
What are the benefits of term life insurance?
If you wish to leave a legacy behind for your family, life insurance is an important consideration. Term life insurance provides an affordable way to ensure your family can continue making ends meets. Because this is the most basic type of life insurance, it’s easy for many to fit it into their budgets. And you’ll pay the same rate for your entire term, regardless of waning health.
Most insurance providers allow you to select a term of one to 30 years, giving you the option to lock in your rate for longer. When you renew a term life insurance policy, your new rate is recalculated based on your current health and other factors. This is why many people lock in their rate for longer terms.
Get started today!
Are you wondering how much term life insurance would cost you? Fill out a quote form today, and let our agency find a policy for you. All it takes is a few minutes to provide your family with years of financial protection.
What is universal life insurance?
Universal life insurance is a form of whole life insurance that gives you more control when it comes to how your money is being handled. It combines the low-cost coverage of term life insurance with the savings element of whole life insurance. Universal life insurance provides more flexibility than other policies. You can review and adjust premiums, savings element and the death benefit as circumstances change.
What are the benefits of universal life insurance?
With a universal life insurance policy, you can shift money between the insurance and savings components as the market and interest rates change. This control is great for people who prefer a hands-on approach to investing. For example, if your savings component has low returns, you can use it to pay the premiums instead of paying out of pocket.
Get started today!
Want to learn more about universal life insurance? Contact us to learn more about it. We’re happy to answer your questions and help you find a policy that meets your needs.
What is variable life insurance?
Variable life insurance is a form of whole life insurance that gives you more control over your investment options. This policy also includes a cash value account, which is invested into many sub-accounts of your choosing. As your policy’s cash value grows, you can use the profits to increase the death benefit you leave behind. Or, you can withdraw funds as necessary.
What are the benefits of variable life insurance?
A variable life insurance policy is great if you prefer to do your own investing. Like all investments the policy’s cash value can grow or decrease depending on the investment fund performance. Plus, annual growth of your policy’s cash value account is not taxed as ordinary income, which can save you money in the long term.
Get started today!
Choosing the right variable life insurance policy involves many working parts. We’re happy to help you select a policy and set up your investment options. Contact us today to protect your family’s financial future.
What is whole life insurance?
Whole life insurance provides financial protection over your entire lifetime. This is different from a term life insurance policy, which provides protection for a specified period of time. Also, known as ordinary life or straight life, whole life insurance is in the cash value category of life insurance. Universal life, variable life, and endowment policies are also in this category.
The premiums of whole life insurance are fixed at the age you buy your policy and do not change as you get older. As long as you pay the monthly premium, your beneficiaries receive a payout upon your death.
What are the benefits of whole life insurance?
Whole life insurance doubles as both comprehensive coverage and an investment tool. Many of these policies invest part of your premium to allow your policy to accrue cash value. You can save these additional funds as part of the death benefit payout. Or, you can withdraw funds to support big life events, such as buying a new home or sending a child to college.
Because whole life is more comprehensive, premiums often cost more than term life insurance. But, you get a lot more bang for your buck. Plus, your premium remains the same throughout your life. With term life insurance, your rate is recalculated each time you renew coverage.
Get started today!
Want to know more about whole life insurance and how much it might cost you? Call us today for a free, no obligation quote. We’ll find a policy to fit your needs. All it takes is a few minutes to provide your family with years of financial protection.
What is final expense insurance?
Losing a loved one can be an overwhelming experience with decisions to be made regarding funeral plans. Final expense insurance covers the funeral costs of the departed, which saves family members from the stress of a large expense.
Final expense insurance vs. life insurance
Similar to final expense insurance, life insurance also pays the beneficiary upon the death of the insured. However, there are significant differences between these policies.
Life insurance often requires a medical exam and can be denied if an applicant has a preexisting chronic condition. A life policy is purchased for high dollar amounts, often beginning at $10,000, which makes the premiums higher.
There is no medical exam required for final expense insurance. Most applicants are qualified after answering a health questionnaire. The face value of a final expense policy is much smaller than traditional life insurance policies, which results in a lower premium.
What are the benefits of final expense insurance?
Final expense insurance can help your family when they need it most. Here are a few benefits to purchasing a final expense policy:
What is an annuity?An annuity is a long-term investment between you, the annuitant, and an insurance company, the annuity issuer. Under this contract, you pay after-tax funds to the annuity issuer, who then invests your principal to meet your financial objectives and pays you or your beneficiary back with earnings (subject to the claims-paying ability of the issuer).
If you have a fixed annuity, your interest rate is guaranteed. With a variable annuity, your earnings are linked with the fluctuating performance of your investments and may be worth more or less than your principal when redeemed. In addition, you have added control in how your money is invested, creating a higher potential for growth. However, this option comes with a higher risk in return.
Unlike other investment plans, there is no limit to how much you can invest in an annuity. Your funds will steadily grow with a tax-deferred status, and you pay your regular tax income rate on only your earnings upon withdrawal.
What annuity options are available?An immediate annuity can begin paying you right away. You can choose whether you want your income guaranteed for a specific time period or if you want lifelong payments. The amount of your payments is calculated based on your principal and your life expectancy.
A deferred annuity is broken up into two phases:
Contact us to learn more about planning your future with an annuity. We are happy to answer your questions and help begin your investment process today.
Term insurance 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.
In contrast, permanent insurance provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time.
It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances and financial goals.
But remember, the best way to figure out the amount and type of life insurance that makes sense for your particular situation is to meet with a qualified and licensed life insurance professional.
Most people are familiar with the basics of life insurance. You pay a premium and your family receives a monetary payout when you die. But there is more than one type of life insurance policy that can protect your family’s financial future. You must decide which type of life insurance is right for your needs.
What is term life insurance?
Term life insurance is the most affordable type of life insurance. This makes it popular among young adults who are just starting families of their own. With a term life policy, you select the number of years—the term—in which your policy will be active. You may find monthly premiums to be affordable. But, keep in mind that dependents will receive a payout only if the policyholder dies within the specified term.
What are the benefits of term life insurance?
If you wish to leave a legacy behind for your family, life insurance is an important consideration. Term life insurance provides an affordable way to ensure your family can continue making ends meets. Because this is the most basic type of life insurance, it’s easy for many to fit it into their budgets. And you’ll pay the same rate for your entire term, regardless of waning health.
Most insurance providers allow you to select a term of one to 30 years, giving you the option to lock in your rate for longer. When you renew a term life insurance policy, your new rate is recalculated based on your current health and other factors. This is why many people lock in their rate for longer terms.
Get started today!
Are you wondering how much term life insurance would cost you? Fill out a quote form today, and let our agency find a policy for you. All it takes is a few minutes to provide your family with years of financial protection.
What is universal life insurance?
Universal life insurance is a form of whole life insurance that gives you more control when it comes to how your money is being handled. It combines the low-cost coverage of term life insurance with the savings element of whole life insurance. Universal life insurance provides more flexibility than other policies. You can review and adjust premiums, savings element and the death benefit as circumstances change.
What are the benefits of universal life insurance?
With a universal life insurance policy, you can shift money between the insurance and savings components as the market and interest rates change. This control is great for people who prefer a hands-on approach to investing. For example, if your savings component has low returns, you can use it to pay the premiums instead of paying out of pocket.
Get started today!
Want to learn more about universal life insurance? Contact us to learn more about it. We’re happy to answer your questions and help you find a policy that meets your needs.
What is variable life insurance?
Variable life insurance is a form of whole life insurance that gives you more control over your investment options. This policy also includes a cash value account, which is invested into many sub-accounts of your choosing. As your policy’s cash value grows, you can use the profits to increase the death benefit you leave behind. Or, you can withdraw funds as necessary.
What are the benefits of variable life insurance?
A variable life insurance policy is great if you prefer to do your own investing. Like all investments the policy’s cash value can grow or decrease depending on the investment fund performance. Plus, annual growth of your policy’s cash value account is not taxed as ordinary income, which can save you money in the long term.
Get started today!
Choosing the right variable life insurance policy involves many working parts. We’re happy to help you select a policy and set up your investment options. Contact us today to protect your family’s financial future.
What is whole life insurance?
Whole life insurance provides financial protection over your entire lifetime. This is different from a term life insurance policy, which provides protection for a specified period of time. Also, known as ordinary life or straight life, whole life insurance is in the cash value category of life insurance. Universal life, variable life, and endowment policies are also in this category.
The premiums of whole life insurance are fixed at the age you buy your policy and do not change as you get older. As long as you pay the monthly premium, your beneficiaries receive a payout upon your death.
What are the benefits of whole life insurance?
Whole life insurance doubles as both comprehensive coverage and an investment tool. Many of these policies invest part of your premium to allow your policy to accrue cash value. You can save these additional funds as part of the death benefit payout. Or, you can withdraw funds to support big life events, such as buying a new home or sending a child to college.
Because whole life is more comprehensive, premiums often cost more than term life insurance. But, you get a lot more bang for your buck. Plus, your premium remains the same throughout your life. With term life insurance, your rate is recalculated each time you renew coverage.
Get started today!
Want to know more about whole life insurance and how much it might cost you? Call us today for a free, no obligation quote. We’ll find a policy to fit your needs. All it takes is a few minutes to provide your family with years of financial protection.
What is final expense insurance?
Losing a loved one can be an overwhelming experience with decisions to be made regarding funeral plans. Final expense insurance covers the funeral costs of the departed, which saves family members from the stress of a large expense.
Final expense insurance vs. life insurance
Similar to final expense insurance, life insurance also pays the beneficiary upon the death of the insured. However, there are significant differences between these policies.
Life insurance often requires a medical exam and can be denied if an applicant has a preexisting chronic condition. A life policy is purchased for high dollar amounts, often beginning at $10,000, which makes the premiums higher.
There is no medical exam required for final expense insurance. Most applicants are qualified after answering a health questionnaire. The face value of a final expense policy is much smaller than traditional life insurance policies, which results in a lower premium.
What are the benefits of final expense insurance?
Final expense insurance can help your family when they need it most. Here are a few benefits to purchasing a final expense policy:
- It is designed to pay out immediately.
- Rates never increase, and benefits never decrease.
- Most people can easily qualify.
- It is a more affordable alternative to life insurance.
What is an annuity?An annuity is a long-term investment between you, the annuitant, and an insurance company, the annuity issuer. Under this contract, you pay after-tax funds to the annuity issuer, who then invests your principal to meet your financial objectives and pays you or your beneficiary back with earnings (subject to the claims-paying ability of the issuer).
If you have a fixed annuity, your interest rate is guaranteed. With a variable annuity, your earnings are linked with the fluctuating performance of your investments and may be worth more or less than your principal when redeemed. In addition, you have added control in how your money is invested, creating a higher potential for growth. However, this option comes with a higher risk in return.
Unlike other investment plans, there is no limit to how much you can invest in an annuity. Your funds will steadily grow with a tax-deferred status, and you pay your regular tax income rate on only your earnings upon withdrawal.
What annuity options are available?An immediate annuity can begin paying you right away. You can choose whether you want your income guaranteed for a specific time period or if you want lifelong payments. The amount of your payments is calculated based on your principal and your life expectancy.
A deferred annuity is broken up into two phases:
- Accumulation: This is when you add money to your annuity, whether you pay in a lump sum or you make a series of payments. You can continue to let your account grow tax-deferred for an indefinite amount of time.
- Distribution: This is when you begin withdrawing money from your annuity whether you take out systematic withdrawals or you annuitize to supplement your finances with a regular stream of income for life.
Contact us to learn more about planning your future with an annuity. We are happy to answer your questions and help begin your investment process today.