People tend to insure what they think is an important asset such as their car or home, but don't realize their most important asset is their ability to earn income.
Think about this: you insure your car because you might be in an accident — but what about the driver? How would your family cope if suddenly you could no longer work? Personal insurance is a necessity for most of us. The trick is to get the best-value policies. Life insurance can be a difficult road to navigate. Let our experienced and knowledgeable staff help you determine your needs and guide you to the policy that is best suited to you.
We offer a wide range of products and financial services that meet the needs of individuals, families, and business owners. Your values are unique, representing what is important to you and your family. They won't be exactly the same as another family's, nor will they remain static. They will change over time, with your needs and priorities.
Life insurance should probably be called death insurance. If you die, your beneficiaries will receive a lump sum payment. This applies to most illnesses or conditions or an accident but not suicide. Regardless of your age, including life insurance in your overall financial plan is critical. Some primary benefits of life insurance include the ability to:
- provide security for your family
- create an estate for your heirs
- replace lost income
- pay off any debt that you leave behind
- provide funding for your children's education
- ensure the continuation of your business
There are two basic types of life insurance: Term Insurance and Permanent Insurance (which can be further divided into Whole Life Insurance and Universal Insurance). Learn more by reading below.
Term Life Insurance
The simplest form of life insurance is Term Life Insurance. It is designed to pay the face amount of the insurance policy if you die within a certain period of time (e.g., 5, 10, 30 years). If you die within the term covered by the insurance policy, the face value of the life insurance policy is paid to the survivor. If you die after the period without renewing the coverage, nothing is paid out.
Term insurance is the least expensive form of life insurance. In addition, this coverage may be renewed for further terms and most allow you to convert to a permanent life insurance plan. Life Insurance Companies offer benefits of up to $5,000,000, or up to $250,000 for plans that do not require medical exams.
Term life insurance can be purchased in a number of ways, including:
Level Term Insurance
Coverage remains the same throughout the term of the insurance policy. Rates are guaranteed, but increase at term renewals.
Decreasing Term Life Insurance
Provides coverage to pay off a mortgage in the event of your death. It reduces over time in line with the decreasing value of the mortgage, but your premiums remain the same.
Permanent Insurance covers insured persons for their lifetimes and is designed to pay a benefit when the person dies. The premiums can be paid for 20 years, to age 65, or for life. In other words, there is no specific term attached to the policy. Insurance companies offer benefits of up to $5,000,000, or up to $250,000 for plans that do not require medical exams. Permanent Insurance is the best solution to transver wealth between generations.
This type of Insurance is based on level premiums, the amount of which is determined by your age, health and lifestyle when the policy is written - the younger and healthier you are, the lower the premium.
This type of policy also has an investment aspect. The premiums, which are typically higher than term policies, are used to build up a policy reserve - or "cash value" - that grows tax-deferred, and which can be drawn upon when needed. We can describe life insurance as being like one of the most profitable investments.
There are two main types of Permanent Life Insurance:
Whole Life Insurance
Has the potential for earning policy owner dividends.
Universal Life Insurance
Fully customizable and ideal for people who wish to actively manage their life insurance policy, and want premium paying flexibility.
Before buying any Life Insurance, you have to figure out what your family's financial needs will be. To do that, you'll need to calculate what percentage of income will need to be replaced and for how long, the rate of investments made (from insurance money), and the expected inflation rate. For further information please contact our Life Insurance Division and speak with one of our specialists or email firstname.lastname@example.org.