Securing life insurance coverage doesn't need to be overly complicated or take months to secure. Start by knowing the type of coverage available and selecting the right policy to fulfill the intended purpose. Then work with us to execute the plan and secure this invaluable protection.
The most affordable life insurance available, term life insurance is often a good fit form families just starting out. Given higher amounts of death benefit can be secured at a lower cost as compared to other life policies, many individuals first life insurance policy is term life. As an added benefit of newer term insurance policies, some plans allow for the death benefit to be accessible if the insured suffers a critical or chronic illness. This feature could provide funds to the insured while still living and when bills start to add up due to an accident or unforeseen event.
Term insurance does not build cash value and is guaranteed for only a specified number of years, which is typically no more than 30 years. Therefore, term insurance is not the best option for those looking for permanent protection and cash value in later years.
Flexible premium payment, potential for cash value growth, and availability to policy riders, including additional term insurance and long term care coverage, are all features of universal life insurance. The most flexible type of insurance coverage, universal life protection can be designed to fulfill multiple purposes. Estate equalization, tax-free distributions in retirement, lifetime guaranteed benefits, and pension maximization are just a few instances where universal life insurance could be a good fit.
The guarantees within universal life often account for the highest possible cost and lowest interest rates that could be realized, therefore this type of coverage might not be suitable for individual who desire conservative growth potential.
Individuals seeking conservative, guaranteed, growth with more assured returns, may find whole life insurance as a good fit with their lower risk tolerance. Whole life coverage provides a guaranteed growth of value with potential of slightly higher returns based on the "dividends" (not interest) applied to the policy. Dividends are not guaranteed, but cash value growth is guaranteed within a whole life policy.
Premiums are not flexible within a whole life contract, and guaranteed cash value growth creates higher internal cost as compared to other type of insurance coverage. Due to higher cost, a whole life contract might not be suitable when higher death benefits are a necessity.
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