Life Insurance

Many of us buy life insurance because we want to make sure that our loved ones, especially the people who are dependent upon us are financially secure after we die. Stated another way, we are purchasing life insurance to replace our income. However, non-earning caregivers in your family serve a very important and often overlooked economic value and should be covered by life insurance as well.

There are basically two kinds of life insurance.

Term Insurance: This is pure insurance coverage which provides death benefit protection without any savings, investment or cash value components for the term of the coverage period. This is the least expensive form of life insurance. However, if you get to the end of your policy term and still need life insurance, you will need to have your agent shop for a new policy which will then be priced at your older age and your health condition. Most policies have a conversion provision which will allow you to convert your policy to a permanent plan prior to the expiration of the term.

Permanent Insurance: This combines an investment product with the insurance coverage to build cash value. Common forms for this type of policy are called Whole Life, Universal Life, and Variable Life. Usually you will pay a higher premium for this type of policy, but if the policy is set up correctly, it will provide a level death benefit and a level premium for as long as you continue to make payments. These types of policies can also serve as a form of retirement income. Some may also allow you to borrow funds from the cash value you have accumulated in the policy.

Life insurance is priced based on your life expectancy, the death benefit amount you request and the length of the policy, whether it’s for a specific period of time (term insurance) or the duration of your life (permanent insurance). Regardless of the type of policy you have, most policies require you to meet certain guidelines regarding your lifestyle and health history.

If you are interested in life insurance, we invite you to contact us to learn more about the various plans and options we have available. We provide both individual life insurance coverage and group policies for our business customers

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