Just like other types of insurance like home, auto or health insurance, life insurance is an agreement between you (the policyholder) and an insurance company. A life insurance policy provides financial security for your loved ones by paying a tax-free, lump-sum payment, called a death benefit, to your beneficiaries. Your beneficiaries can use this money without any restructions. Some of the most common uses include:
Life insurance is designed to spread the risk of someone dying between all policy owners. In some cases, a person may never file a claim on their life insurance before it expires. However, for the policies that do end up resulting in a claim, having that insurance policy is life-changing. You want to provide for your family, and life insurance makes that a reality – no matter what happens. In exchange for this protection, you agree to pay a monthly or yearly premium, as long as you need the coverage. The great advantage of life insurance is that you can lock in your premiums for a period of time so that you always know exactly what you will pay!
Term life insurance is simple and affordable. It provides protection for a defined period of time, and is especially helpful when life insurance needs are high, and funds are limited. In the event of death, it pays a tax-free cash benefit (death benefit) to your named beneficiaries. The cost is locked in for the term of the policy, so you know exactly what you will pay!
This term life insurance coverage may be right for you if:
Participating life insurance provides lifelong protection, and the opportunity for tax-advantaged, cash value growth, throughout the life of the policy. If you pass away, it pays a tax-free cash benefit, called a death benefit, to your named beneficiaries. Coverage and premiums are guaranteed for life, and you may also receive dividends within the policy that can be used to increase coverage, decrease premium payments, or even taken out as cash.
This coverage may be right for you if:
Universal life (UL) insurance provides lifelong protection, with an investment component. UL provides flexibility and customization based on your risk profile and objectives. In the event of death, it pays a tax-free cash payment, called a death benefit, to your named beneficiaries. Your premiums are deposited into a policy fund that will be used to pay for the insurance costs. The remaining balance of funds is invested on a tax-advantaged basis in a variety of investment options.
This universal life insurance coverage may be right for you if:
Life insurance premiums vary depending on the type of insurance you select and other factors including:
With all the life insurance options, there is something for every situation, no matter how simple or complex it is! We are here to assist you by reviewing your options so that you can feel confident that you and your loved ones are protected!