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| The most common reason for owning life insurance is to provide income replacement to your beneficiaries when you die. The life proceeds can be used to continue to support family members left behind. But if you are interested in estate planning, cash accumulation, wealth transfer, and estate tax liquidity, life insurance can also help you achieve these goals. |
| Other Common Reasons to Buy Life Insurance |
Here is a list to help you determine if we are your match:
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Pay off any Debts you leave behind (mortgages, car loans, medical bills) |
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Avoids selling of real estate, automobile, and stocks upon death |
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Proceeds are available immediately upon death to meet financial obligations (situations such as real estate may have to be sold cheaply in order to get the money on time) |
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Avoid depleting the resources your family lives off of (house, car, income) |
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Creates an estate for your heirs |
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Under a buy-sell agreement, life insurance can be used to provide cash for the purchase of a deceased owner's interest in the business |
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Utilize as an Investment Vehicle to help you meet long term financial goals: | |
| What You Should Know |
Term Life
Term life insurance policies provide death benefit protection for a specified period of time or term. For instance, you might buy a 10-year term policy. Generally speaking, if you're looking for coverage for a short period of time, term life makes more sense.
If you are interested in using the policy as a form of savings (internal cash value), permanent insurance is a better fit. Most life insurance policies will require that you meet certain medical criteria.
Permanent insurance provide insurance protection for your entire life as long as the policy remains in force. |
Universal Life
This option offers greater flexibility than whole or term life. After your initial payment, you can reduce or increase the amount of your death benefit (you will have to give the insurance company medical proof that you are still in good health). In addition, after your initial payment, you can pay premiums any time, in any amount, within the policy's required minimums and maximums. You will need to actively manage these policies to maintain sufficient funding, especially because the insurance company can increase charges.
Some Universal life insurance policies, if your investments perform well, you'll have a higher cash value and death benefit (some universal and variable universal policies also allow you to add your cash value into your death benefit).
You can also take loans against the cash value of your policy, but if you don't pay them back with interest, your beneficiaries will receive a reduced death benefit. You can also surrender your policy for cash or convert it into an annuity, but keep in mind that cashing in a permanent policy after only a couple of years is an expensive way to get insurance protection for a short time. |
The cost of life insurance will depend upon
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the type of policy |
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your age |
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your health | |
A life insurance contract is made up of:
| Provisions: |
describe or explain features, benefits, conditions, or requirements of the contract. |
| Options: |
features of the agreement that require you to make a choice regarding some aspect of coverage. |
| Riders: |
additional coverage offered by the insurer at the time of application and added to the standard agreement in return for an additional premium. | | |
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