Life Insurance

Concept of insurance with hands over a house, a car and a family
Term Life Insurance and Whole Life Insurance Plans

The topic of Life Insurance is a sensitive one and people are often resistant to discussing it. After all, none of us wants to think about death and how it would impact our loved ones. Unfortunately only 56% of Americans have life insurance. Most people are not aware of this type of protection and believe “this will never happen to me”.

That’s the whole reason behind insurance; to plan for the unexpected. If you care about your family, spouse or business you have to explore this option. There are a variety of life insurance products that can help your family continue their life without financial stress in the event something unexpected should happen.

For instance, did you know that there is life insurance that can return all premiums paid? There are also affordable life insurance plans that can meet your budget needs. With so many options, and such a critical decision, it is important that you work with a knowledgeable, objective professional who can help guide you in making the choice that is right for you.

Talk to our experienced insurance specialist who are especially trained to discuss this sensitive topic and will give you their objective guidance in making the right choice.

In the event of death, life insurance helps family’s or a corporation’s financial continuity.

If a spouse passes away, the life insurance policy will indemnify with a lump sum amount set in the insurance policy. The rule of thumb in choosing an amount of coverage is to purchase an amount that is equal to 10 times the annual salary of the insured. Therefore if the insured earns $50,000, the coverage amount should be $500,000.

There are two main types of life Insurance:

Term Life Insurance

Term insurance is life Insurance that guarantees a set premium for a period of time. The period of time can be 10, 20 or 30 years. After that time period, if the insured is still living, the life insurance policy expires. Many young families choose 20 or 30 year term life insurance. The thought is that by the time the insurance expires (10, 20 and 30 years), the couple’s children will be in the workforce and be able to be self-sufficient.

Term life insurance can also be used for corporations. For instance, in case of the death of a partner, the life insurance can compensate the corporation. This is called buy and sell agreement. A lawyer can be consulted when considering life insurance for this purpose. A Term life insurance can be also used to insure a high valued employee in case of his death by accident or illness.

Universal Life Insurance

Universal life insurance is a permanent insurance. The insurance will expire when the policy holder reaches the age of 121. This type of policy accumulates a cash value. As a result, it is estimated that within 20-25 years the insured may recover the premiums paid through the cash value. These figures vary among carriers, so make sure to choose the right carrier for the universal life insurance.