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Our Services: Life Insurance

Life Insurance

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Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:

  1. Pay final expenses
    Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.
  2. Create an inheritance for your heirs
    Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.
  3. Make significant charitable contributions
    By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.
  4. Create a source of savings
    Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn at the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan. Furthermore, the interest credited on the cash value is tax deferred (and tax exempt if the money is paid as a death claim).

What Type of Life Insurance Is Right for You?

Term Insurance

Term life insurance guarantees a certain death benefi­t payout if the insured dies during a speci­fied period, such as 1, 2, 10, 15, or 30 years, and then the policy ends. Often premiums for term insurance are level for a certain number of years but may go up as the insured gets older.

It is relatively inexpensive and can protect a young family from economic devastation and the loss of the family’s income due to unexpected death of their provider/s. However, it is temporary, and if life insurance is desired in the future, the applicant will have to pass a new medical exam.

Permanent Insurance

The major types of permanent insurance policies are whole life, universal life and variable life in many different forms. Permanent insurance provides lifetime coverage as long as a policy stays in force, and permanent policies are typically comprised of two parts: a savings, cash or investment portion and an insurance portion. This makes the cost of premiums for permanent insurance higher than for term policies.

Whole life insurance policies are permanent policies with fairly simple terms. They have ­fixed premiums and guaranteed cash value accumulation.

Universal life insurance gives consumers flexibility in the premium payments, death benefi­t amounts, and the savings or cash-value elements of their policies, which is why it’s sometimes called adjustable life insurance.

Variable life comes is permanent coverage that allocates cash value to investment subaccounts. Variable policies often have higher fees due to the investment management required. When purchasing a variable life policy, you’ll receive a list of potential investments, along with their performance history and fees, and can choose how much of the cash value is invested in each. Because these subaccounts are securities based, if your investments do not perform well, your cash value and death benefit may decrease.