Term Life Insurance

Term life insurance  provides temporary financial protection for your loved ones for a specific number of years.  Its death benefit pays the money directly to your beneficiaries in order to help with funeral costs and ongoing financial obligations, such as daily living expenses.

You may want to purchase a term life insurance policy to:

• Get valuable coverage at an affordable price
• Help cover specific financial responsibilities like a mortgage or college expenses
• Supplement a permanent policy

If the Term policy expires before your death, there is no payout. You may be able to renew a term policy at its expiration, but the premiums will be recalculated for your age at the time of renewal.

If you think your financial needs may change, you may also want to look into “convertible” term policies. These allow you to convert to permanent insurance without a medical examination in exchange for higher premiums.

Permanent Life Insurance

Permanent Life Insurance provides lifelong protection, and the ability to accumulate cash value on a tax-deferred basis.

There are a number of different types of permanent insurance policies, such as whole (ordinary) life, universal life, variable life, and variable/universal life.

Whole Life Insurance

 Whole life insurance is a permanent policy, which gives you guaranteed protection for your loved ones that lasts a lifetime. With whole life insurance, unlike term, you build guaranteed cash value, which you can use however you want. Participating whole life insurance is eligible to earn dividends,1 which can be used to increase the death benefit  and the cash value of the policy.

 As long as premiums are paid, whole life insurance provides coverage for an insured’s entire life and the death benefit payout is essentially guaranteed in the event of the policyholder’s passing. In addition to the death benefit, whole life policies include a cash value component, which is an account that accumulates funds over time.

The policyholder can also choose to borrow against the money during their lifetime under certain circumstances. This account is funded by the policy’s premiums.

Universal Life Insurance

 Universal life insurance is a type of permanent life insurance that offers the flexibility to change your death benefit and adjust your monthly premiums. Like whole life insurance, universal life coverage can last for your lifetime and build cash value that you can borrow against while you're alive. The cash value earns a fixed interest rate that is determined at the time that the policy is issued.

 A great feature of universal life insurance is that, as your financial situation changes, you can increase or decrease your premiums, or death benefit payout amount. You can also skip premium payments as long as the cash value will cover the cost of your insurance for that month.

 Indexed Universal Life Insurance

 Indexed universal life insurance is a type of permanent coverage, which means it lasts your entire life and includes a cash value account that typically grows tax-deferred. The cash value of an IUL policy earns interest based on a  stock index, such as the S&P 500. The amount you can earn is subject to “floors” and “caps” to help minimize large swings in interest payments. The floor is the lowest your account rate can go and is usually guaranteed for the life of the policy, but is often set at 0%. This means the account won’t suffer losses if the market crashes.

The cap is the highest interest rate the account can earn, so if the market is up more than the cap, you’ll get credited only for the cap amount. Unlike the floor, your insurer can change the cap while the policy is in force.

 Similar to universal life policies, IUL offers flexible coverage, giving policyholders the option to adjust their premiums and death benefit as needed.

Contact us today, we will help determine the best policy for your needs and objectives