Life Insurance

     Isn't it time to talk to someone about life insurance?  If you have questions and want to speak with one of our expert representatives, give us a call or email us your request.  We have access to some of the best life insurance carriers on the market, and we can find the one that best suits your family's needs. 

• Term Life Insurance
• Cash Value Life Insurance

Life insurance provides a pre specified death benefit to be paid to the designated estate or beneficiary at the time of the insured's death. There are several different types of life insurance and the proper coverage depends on each situation.

Whole life insurance is carried for the entire life of the insured. It can be paid until the death of the insured or for a specified number of years. Unlike term life insurance, if the premiums are paid then eventually the beneficiary will collect on the insurance.

Term Life insurance is carried for a specific number of years unlike whole life which runs until the death of the insured. Term insurance is almost always less expensive than whole life because it may expire before the death of the insured; therefore, payment is not a certainty. In many cases people select term insurance for a period of years until there need for funds is reduced due to savings or retirement income. It can be purchased for differing periods of time such as 10 year term life which would end 10 years from the inception date of the policy. It can have an increasing premium each year or a level premium over the policy period. Each case must be looked at individually to determine what is best for the particular situation.

 Universal life insurance is a newer hybrid type of insurance. It is a flexible premium type of insurance which allows for varying the amount and timing of the premium payments. Premiums are credited to an account which earns interest that varies depending upon current conditions and the cost of the death benefit is taken from this account. The attraction of this type of insurance changes depending upon market conditions.

Term Life Insurance

Term life insurance provides a death benefit only. It does not build cash value.

Three Types of Term Insurance

Annual Renewable Term

Death benefit remains level. Premium increases annually since there is an increased likelihood of death.

Level Term

Both the death benefit and the premiums remain level for a predefined period of time; usually, five, ten fifteen, or twenty years.

Decreasing Term

The death benefit decreases each year even though the premiums remain level. This type of term is often used to cover a mortgage or other loan with a decreasing balance.

Characteristics of term insurance

• Low cost in the beginning
• Premiums increase over time
• Can help to meet specific short-term needs.
• Has no cash value
• Lasts a specific period of time…no more; no less.

Cash Value Life Insurance

There are several different types of cash value life insurance policies from which to choose. They are all designed to provide living benefits as well as the death benefit.

The principal objective of cash value life insurance is the same as with term insurance: to create an immediate estate should the insured die. The cash value in the policy can also be accessed through loans or withdrawals for emergencies or other needs. It is important to remember that loans or withdrawals of a policy's cash value will reduce the policy's death benefit.

• Whole Life Insurance
• Universal Life Insurance
• Variable Life Insurance

Whole Life Insurance

Whole life insurance offers a number of guarantees made by the issuing insurance company. The following are typically guaranteed with whole life insurance:

• death benefits
• cash values
• level premiums

Sometimes dividends are also guaranteed.

Whole life insurance can be a good tool for long term life insurance needs.

Characteristics of Whole Life Insurance

• Tax-deferred growth of cash value
• Cash values are guaranteed
• Premiums are guaranteed
• Can withdraw or borrow cash value
• Dividends are tax free

Universal Life Insurance

With a Universal Life policy, both premium payments and death benefits can be flexible, within limits.

When premiums are paid, part of the premium goes to pay for the term insurance and part of the premium is put into a side fund upon which interest is paid.

If the premium paid is not enough to cover the cost of the insurance, the additional amount needed is taken from the side fund.

The policyowner has a number of options with regard to premium payments. Within limits, premiums can be adjusted up or down. Premium payments can also be skipped entirely if there is enough cash value in the policy to make the payments. Also, the death benefit of the policy may be adjusted up or down. However, a request to increase the death benefit may require proof of insurability (such as updating some health questions or even submitting to a physical examination)

Characteristics of Universal Life

• Tax-deferred growth of cash value
• Interest rates are competitive
• Access to cash value through loan or withdrawal
• Premiums are flexible
• The policy's death benefit may be adjusted (higher or lower)

Variable Life Insurance

Variable life insurance is a flexible life insurance product that is offered by a prospectus.

Variable life insurance has a term insurance foundation and an investment fund. The policyowner gets to choose which type of investment vehicle in which the cash value will be placed. The following are types of investment vehicles from which the policyowner can choose:

• Money Market Account
• Corporate Bond Portfolio
• Common Stock Portfolio
• Government Securities
• Fixed Account

Insurance agents must be properly licensed to sell securities in order to sell variable products which are sold by prospectus. Be certain that you CAREFULLY read the prospectus before purchasing any variable product.