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Life Insurance Made
Easy.
To
discuss your options, call us toll-free at 1-800-878-9303
What Is Life
Insurance?
Life Insurance provides financial security for you and your family. It
protects against the uncertainties of life so you can plan for the
future. Whether we like it or not, death is not about if but
about when. Life insurance is one of the most efficient ways to leave
money behind for someone you love...income tax free.
What Kinds Of
Life
Insurance Are There?
Basically, two kinds:
1. Term Life Insurance
2. Permanent
Life
Insurance
Keep in mind there are different options available within these two
kinds. Discussing your options with a licensed insurance agent may help
eliminate a lot of pain in the future.
Term Life
This form of insurance is good only for a specific
term. Term life insurance is good for only a specific term of time. It
may be 10, 15, 20, 30 years. It is what it says, just for a term. At
the
end of the term, you can purchase it for another term. Or simply,
cancel the policy. The biggest disadvantage of renewing is that you
will be older and may not be in as good a health as you were before.
Therefore, your renewed term policy may cost you a fortune.
Usually if you do not pass away before the term ends and you
cancel the policy at the end of the term, all the money that
you put into your term life insurance will be gone.
So if you do not die, the insurance company keeps your money.
However there are term insurance policies offered by very reputable
companies that do REFUND all your premiums if you are still alive at
the time your term policy ends. Now this makes a win-win situation. If
you pass away, your beneficiary gets the benefit. If you live to the
end of the term policy, you get all the premiums refunded, including
the cost of any riders minus any loans, if applicable.
There is an additional cost to put a Return of Premium Rider to your
term policy. If you can afford it, it is well worth the money!
Most of the time you will buy term insurance to protect your
mortgage, cover for loss of income while you have children as
dependants, a temporary debt or if you cannot afford to purchase a more
expensive, longer lasting kind of life insurance.
Permanent
Insurance
Permanent Life Insurance is designed to go on for the whole
life (usually till age 100 or 121) without ever any increase in the
premiums. If you have sufficient coverage to cover your needs on this
type of policy, you really do not need any other type of life
insurance.
The biggest reason why most people will not purchase permanent life
insurance is because it usually will cost about four to six times
more compared to term life insurance. Depending upon the type
permanent of policy you have, it may or may not however, incur
substantial cash values over time. If it does, you may borrow loans
against these cash values.
Permanent life insurance enjoys a favorable tax treatment. Your cash
value grows tax deferred, meaning that as long as the policy in force
you do not pay taxes on any earnings
There are two types of Permanent Life Insurance.
1. Whole Life insurance
2.
Universal Life insurance
Whole Life insurance policy provides both a death benefit and a cash
value component. The policy is designed to remain in force for a
lifetime. Premiums stay level and the death benefit is guaranteed. Over
time, the cash value of the policy grows and helps keep the premium
level.
Universal Life insurance is a permanent policy that gives the owner the
right to vary premium payments and the death benefit within certain
prescribed limits. The rate of return on the accumulation account
fluctuates according to investment performance but will generally not
fall below a guaranteed minimum rate of return.
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