Life Insurance Policies | What type is right for you?
Life insurance is a nessisity in most Americans lives but about 40% of Americans do not have any sort of life insurance. There are many types of life insurance options today to fit any type of goals and lifestyles. Our part of the process is helping you find the policy that fits your needs. Navigating all the differant types of life insurance policies can be a complicated and frustrating process.
Term Life policies offer flexability & lower costs. With term life there are options to fit just about any situation & budget. With a term life policy you pick a term or how many years you would like to have the policy for and the amout you would like the policy to cover. Term life products often have additional riders or options that you can add to a policy. One such rider is a Return of Premium rider where at the end of the policy you get a set amout of money back sometimes the full amount you have paid for the policy during the term.
As the name states a whole life policy is for your whole life. There are also many options for whole life policies. With a whole life policy you pick a face amount and pay a fixed rate for your entire life. In most whole life policies they accrue a cash value over the life of the policy. That cash value can be borrowed against on most policies allowing access to cash in an emergency or as needed. As with term life many whole life policies can be issues as guranteed issue with little or no underwriting.
Universal Life is a hybrid policy. In these polices it is possible to tie equity accounts into your life policy. UL policies offer tax-deferred cash accumulation for retirement while maintaining a death benefit. UL polices are one of the more advanced policy types available and generally would require us to chat in person to help find the right solution for your specific needs.
Pros of Term Life
- Easiest of all the life insurance products.
- Cheapest life insurance product.
- Provides a lump sum of cash at death.
- Pay for only what you need allowing flexability.
Pros Of Whole Life
- Never Expires
- Cash value forces you to save money.
- Fits well with estate planning & retirement.
Pros of UL
- Lifetime coverage
- Flexible payments
- Tax defered returns
- Cash value plus interest.
Cons of Term Life
- Has a set end date.
- Has no cash value.
Cons of Whole Life
- Possibly 6-10 times higher cost than term.
- Interest on cash value is typically lower than other savings options.
- Typically has a surrender value if you terminate the policy.
- Because of the higher cost people tend to buy less than they need.
Cons of UL & IUL
- Higher & variable premiums
- UL can exaust cash value.
- Fees & charges
The above are just three of the main policy options you have available to you. There are several additional types of policies and we would be happy to speak to you about them.
Here is a list of some of the policy types you can choose from. Permanent Life, Term Life, Whole Life, Universal Life, Variable Life, Variable Universal Life, Simplified Issue Life, Guaranteed Issue Life, Final Expenses and Group Life Insurance. All of these are policies that we can help you, your family or your orginization figure out.
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