Provide a safety net for your beneficiaries and ensure family goals are met. It is never too early to start planning.
Some employers offer life insurance coverage upon hire, but maintaining coverage with a separate policy will stick with you even if you change jobs. If you are nearing retirement, it is time to make sure your future is financially protected. Life insurance can help cover unexpected long-term care or final expenses.
We know life insurance terms can be confusing and once you start internet browsing, it gets even fuzzier. We strive to make sure that you always understand what you are getting and really feel secure with your policy choice. That’s why we have created a chart shedding light on the difference of each and benefits you can expect.
| Permanent Life Insurance Policy Type | Permanent Life Insurance Policy Type | ||
| BENEFIT | TERM LIFE | WHOLE LIFE | UNIVERSAL LIFE |
| LIFELONG PROTECTION | TERM POLICIES LAST FOR A SET PERIOD OF TIME. MOST POLICIES CAN BE RENEWED. | YES, AS LONG AS PREMIUMS ARE PAID. IT LASTS FROM WHEN YOU PURCHASE THE POLICY UNTIL THE DAY YOU DIE. | YES, AS LONG AS PREMIUMS ARE PAID. IT LASTS FROM WHEN YOU PURCHASE THE POLICY UNTIL THE DAY YOU DIE. |
| CASH VALUE | NO | YES. YOUR “SAVINGS COMPONENT” IS ACCESSIBLE WHILE YOU ARE STILL ALIVE | YES. YOUR “SAVINGS COMPONENT” IS ACCESSIBLE WHILE YOU ARE STILL ALIVE |
| INTEREST ON CASH VALUE | NO | GUARANTEED RATE OF RETURN, MEANING THE CASH VALUE IS GUARANTEED TO EARN A MINIMUM AMOUNT OF INTEREST. | YES, IN LINE WITH CURRENT MONEY MARKET RATES. |
| PREMIUMS | PREMIUMS CAN CHANGE AT ANNIVERSARY DATE BASED ON TERM OF POLICY. TERM POLICIES GIVE YOU THE MOST PROTECTIONS FOR THE LEAST AMOUNT OF MONEY. | BASED UPON AGE OF INSURED & REMAIN THE SAME THROUGHOUT THE INSURED’S LIFE. | CAN BE ADJUSTED UPWARD OR DOWNWARD BASED ON COMPANY RULES. |
| DEATH BENEFIT | FIXED | FIXED | CASH VALUE CAN BE INCLUDED IN DEATH BENEFIT. |
FAQ of life insurance policies:
Is a health physical required for a new policy?
Not all policies require a physical. We can discuss the policies and requirements in depth with you.
What if I am single and have no children. Do I really need life insurance?
Certainly. Planning helps protect your loved ones from burdensome expenses when you pass away, like debts or medical expenses. Some people also think that if they have adult children it is unnecessary. Life insurance helps to relieve the burdens of paying for final expenses, estate taxes, paying off debts and can leave your heirs with an inheritance.
I don’t even have a full-time job with constant income. How can I afford life insurance?
Most people misjudge the actual cost of life insurance. Add a life insurance policy to your auto, homeowners or renters coverage and receive discounts to get a policy that will fit your budget. You can always add to your policy later. Most policies when bundled, will hardly seem noticeable to your wallet.
Will my beneficiary have to pay income taxes on the proceeds from my life insurance policy?
According to the IRS, your death benefits are generally income-tax-free and do not have to be reported. Your benefits will help your family pay for things like funeral expenses, mortgage balances or college tuitions for surviving children.
But I have a lot of savings, do I really need life insurance?
Keep in mind things like mortgages that may have not been paid off, at the time of death. Your heirs may want to hold on to your house and there may have not been enough money saved. The average cost of a funeral with a burial is between $9,000 and $15,000. If you have not pre-planned, this could leave a heavy burden. It is always best to help prepare for final expenses. Securing a dependable life insurance policy can help protect your assets and make things easier for your loved ones.
Need advice? Want to sit down with us and discuss your options? We are here to help. Request a quote or call us with your questions!
