Life insurance gives you the peace of mind you only get from knowing that you’ve protected your loved ones. In the event of your passing, life insurance provides money directly to your beneficiaries. They can use the money for whatever they want, such as:

  • Make up for your lost income
  • Fund your child’s education
  • Paying off household debt
  • Paying for your funeral and other related expenses
  • Settling your debts and obligations so that your family doesn’t have to

With over 30 of the top life insurance companies to choose from we specialize in Term Life Insurance, and several types of Permanent Life Insurance.

Types of Life Insurance

Term insurance is a type of life insurance policy that provides coverage for a certain period of time, or a specified “term” of years. If the insured dies during the time period specified in the policy and the policy is active – or in force – then a death benefit will be paid. Unlike permanent life insurance term life insurance typically has no cash value. Term life insurance is often the most affordable coverage because it offers protection for a specific number of years. You may want to purchase a term life insurance policy if you want to:

  • Get maximum coverage at an affordable price
  • Cover specific financial responsibilities like a mortgage or college expenses
  • Supplement your permanent life insurance during years when your expenses are higher, like when you have children or other dependents at home

There are many different types of term insurance policies available. Many policies offer level premiums for the duration of the policy, such as 10, 20, or 30 years. These are often referred to as “level term” policies. While premiums for these level term policies remain level for a set number of years, after this time period the premium increases significantly, many times making the policy cost prohibitive. Most term policies have a built-in privilege to convert to a permanent policy regardless of any changes in the insured’s health.

Whole Life Insurance is permanent life insurance, whole life insurance features guaranteed premiums, death benefits, and cash value. Whole life insurance policies also give you the potential to receive dividends, which can increase the value of the policy when the insured is living or provide an increased death benefit for your beneficiaries. You may want to purchase a whole life insurance policy if you want:

  • Protection for life
  • Payments that stay the same each year
  • To be able to put additional money into the policy on a tax-favored basis
  • Cash value you can use while you are living

Whole life insurance offers confidence through the guarantees it provides:

Guaranteed Premiums: The premiums you pay are guaranteed to remain the same for the life of the policy, regardless of age or health. Guaranteed death benefits. Beneficiaries will receive at least the face amount of the policy upon the death of the insured, assuming you do not have outstanding policy loans and that the policy premiums are paid on time. Guaranteed cash value. Your cash value will grow each year, tax-deferred, until it matches the face value of your policy. When you need it most, you’ll have access to your cash through loan and withdrawal options.

Universal life insurance (often shortened to UL) is a type of permanent life insurance, primarily in the United States of America. Under the terms of the policy, the excess of premium payments above the current cost of insurance are credited to the cash value of the policy. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance (COI) charge, as well as any other policy charges and fees which are drawn from the cash value, even if no premium payment is made that month. Interest credited to the account is determined by the insurer, but has a contractual minimum rate of between 2% and 4%. When an earnings rate is pegged to a financial index such as a stock, bond or other interest rate index, the policy is an “Equity Indexed Universal Life” contract.

Universal life insurance policies provide the flexibility to build your policy’s cash value or focus more on guaranteed protection.

Choose from two general policy designs:

  • Guaranteed Protection lets you choose the length of the protection guarantee and the premium payment schedule up front-both are then guaranteed not to change so long as the premiums are paid as planned.
  • Cash Accumulation allows you to change, within limits, your premium payments and death benefit. It also allows you to set aside additional money in a tax-deferred way to help you meet long-term financial goals.
Final expense insurance can help ease that burden by paying for many of the costs associated with funerals. With the high cost of funerals, the last thing anyone wants to think about after they lose a loved one is paying for and planning final arrangements, but it is a sad reality many people have to face who don’t have the proper coverage to prevent such occurrences.

Unlike the high face value most regular life insurance policies contain, final expense insurance is written with a much lower face value and is intended solely to take care of the cost of a person’s final arrangements. A regular life insurance policy ranges from $250,000 to $1,000,000, while a final expense policy is typically purchased for $5,000 to $50,000.

Anyone can buy final expense insurance. Most often, however, it is purchased by those who are later in life and do not already have a regular life insurance policy in place. Many final expense insurance policies can be underwritten without the designated insured submitting to a medical exam. These no-exam policies contain higher rates for the insurance and can have policy limitations, but are still less expensive to buy than regular life insurance because of the low face value of the policy.

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