A life insurance policy provides a lump sum payment to your intended beneficiary (your loved ones, charity, lender, business partner, etc.) in the event of your passing. While the primary reason for buying a life insurance policy for most people is to ensure the financial well-being of their loved ones, there are many other reasons. They include:
- Income Replacement
- Mortgage and Debt Elimination
- Children’s Education Funding
- Wealth Transfer
- “Forced” Savings
- Final Expenses
- Charitable Planning
- Loan Collateral
- Key Man for a Business
- Buy/Sell Agreements
- Executive Compensation Programs
- Business Succession Programs
There are many life insurance policy types available to serve your needs, most of which can be classified into one of two categories:
- Term Life Insurance: This is the simplest form of life insurance. It is the least expensive type of life insurance policy, designed for temporary needs, and has no cash value. It pays a death benefit only if death occurs during the term of the policy, which is usually from one to 30 years. There are three major types of term life insurance – level term, decreasing term, and increasing term.
- Whole Life Insurance: It provides lifetime protection that builds cash value. It pays a death benefit whenever you die—even if you live to 100! A high premium is required because not only is the company promising to protect the insured for his/her whole life, but a portion of every premium paid in is used for buildup of cash value (equity). This cash value is absolutely guaranteed. There are three major types of whole life insurance—traditional whole life, universal life, and variable universal life, and there are variations within each type.
Your reason to purchase life insurance determines the type of insurance policy and the coverage you need. As your independent insurance agent, my goal is to understand your need and help you find the best policy type at the most competitive rates.
Let me provide you with an instant life insurance quote, free of any obligation. Also, please feel free to contact me for answers to any of your specific questions.