Life Insurance Information
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 life insurance professional.
Type of life insurance we offer:
1. Term Insurance-Policies that offer life insurance protection for a specified term or period of time - typically from one to 30 years or until a specified age. Term life insurance provides a death benefit only, and does not typically offer an opportunity to build up cash values within the policy. As a result, term insurance is generally less expensive than cash value life insurance. Premiums for a term life policy typically increase with the age of the insured.
2. Whole Life Insurance-Also known as permanent insurance that offers life insurance protection throughout the life of the insured as long as the premium is paid when due. The premium may be level or increase after a fixed period, but it will not change from the premium schedule provided when the policy was purchased. Part of each premium payment is applied to the policy's cash value account, which grows on a tax-deferred basis. In addition to providing guaranteed premiums, death benefits and cash values, whole life policies may also pay policy dividends in some cases.
3. Universal Life Insurance-Cash value life insurance policies that offer the policyowner the flexibility to choose his or her amount of insurance, the premiums he or she will pay and the opportunity to change these amounts over the life of the policy (within certain guidelines) to meet changing financial needs. Premium payments are credited to a cash value account where the money earns interest at a rate set by the company which may change from time to time. Policy expenses are deducted from this cash value account. The policy's cash value may be accessed through policy loans and withdrawals.
4. Index Universal Life Insurance-Similar to Universal Life but has the added flexibility of greater cash accumulation feature. Indexed policies allow policy holders to decide the percentage of their funds that they wish to allocate to fixed and indexed portions. Also, these types of universal insurance policies typically guarantee the principal amount in the indexed portion, but cap the maximum return that a policy holder can receive in said account. Since these policies are seen as a "hybrid" universal life insurance policy, they are usually not very expensive (due to lack of mangement), and are safer than an average variable universal life insurance policy.
5. Survivorship Life Insurance- (second to die) life insurance insures two people and pays the death benefit when both have died. It is used primarily for wealth preservation. Policies that insure two lives under one policy, with the death benefit payable at the death of the second insured. When the first insured dies, the policy remains in force and no death benefit is paid. The mortality cost - the cost of the pure insurance - is generally lower with this type of policy compared to the cost of purchasing two individual life policies.
6. Annuities-Contracts in which the buyer pays funds to a life insurance company for investment and, in return, the life insurance company agrees to pay the annuity owner periodic payments during his or her lifetime, typically for retirement purposes. During an annuity's accumulation phase, funds within the contract grow either at a fixed or variable rate, depending on the type of annuity chosen. In the payout phase, the insurance company makes a series of payments to the contract owner, usually at regular intervals, for a fixed period or for life. Most annuities are tax-deferred, meaning cash values accumulated are not taxed until the funds are paid out.
7. Fixed Annuities-Annuities in which the insurance company promises to pay a fixed rate of return on the funds deposited into the annuity, regardless of the company's investment performance. All the investment risk is carried by the insurance company.
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