Life Insurance
Life Insurance Today for Tomorrow’s Future
The primary objective of life insurance is to protect your family against financial loss at your death. Life insurance with a cash value component can also be used to fund a comfortable retirement, children’s education, charitable giving, and other long-term goals. Our aim is to help our clients find the life insurance product that is right for them and at an affordable price. We accomplish this by helping to identify and prioritize personal goals and financial objectives.
Term or Permanent Coverage?
Term Insurance is simple. It is issued for a specified number of years, maybe 10, 20, or 30 years. This is the policy’s term. If you die during the term, the policy will pay the death benefit to the named beneficiary. Once the term has expired, however, no benefits are available. Term life insurance is affordable for almost everyone, although premiums are lowest when coverage is purchased at younger ages. Term life meets the primary objective of life insurance. It protects your family by paying a lump sum in cash if you die during the stated term.
Permanent Life Insurance also provides protection for your family, but it goes one step further and builds cash value. This cash value is available to you through policy loans and withdrawals. In addition to paying a death benefit, a portion of each premium you pay goes toward investment.
Types of permanent life insurance are explained here for you:
- whole life – Whole life insurance offers level premiums and a fixed rate of interest.
- universal life – Universal life insurance pays you a return based on current market rates. The interest rate credited to the cash value of the policy can increase or decrease, depending on market conditions.
- variable life – Variable life insurance allows you control over your investment. You may choose from stock, bond, money market, and fixed interest options.
- variable universal life – Variable universal life insurance offers you the features of variable life and also allows you flexibility in paying your premiums. You can increase your premium payment when you have extra cash and use the policy’s cash value to make premium payments when money is tight.
Do You Need Life Insurance?
Certainly not everyone needs life insurance. But if someone depends on your earning capacity or if you like the idea of providing for loved ones while you build an accessible savings or investment system, let’s talk about whether life insurance is right for you.
Determining the right amount of coverage involves examining your goals and objectives. We’ll look at how much money your family would need to maintain their current standard of living and fund the future financial obligations they anticipate. We will list the resources they have, for example, income, savings, and other investments. Then we will have a good idea of the amount of coverage you will need.
Here are some things you should consider when buying life insurance:
- Can your family continue to maintain their standard of living without you?
- Do you have enough funds on hand to pay final expenses like medical bills and burial costs?
- Have you funded your children’s educations?
- Do you have a retirement funding vehicle in place?
- Would you like to create an estate for your heirs?
Policy Replacement
You should replace an existing policy only if the replacement policy will benefit you. If you want more control over your investment, you might want to consider replacing a fixed interest policy. However, all life insurance policies have surrender periods in the early years where you will pay a penalty to cash out. Also, there may be some unfavorable consequences to replacement, so let’s discuss this issue in depth.
With our expertise we help you develop an insurance buying strategy for a lifetime, ensuring that you will not be over insured or underinsured. This is accomplished by meeting with you annually or bi-annually to review all of your coverages.
Let us show you some life insurance options and protection for your financial goals, tailored to your individual circumstances that may be right for you.
