Life Insurance
Life Insurance
either you love someone, you owe someone, or you are building something...
Life insurance is a reflection of our individual responsibilities, obligations, and expectations. It provides continuity through financial support for family and/or business so grief and adjustment can be the focus.
Your financial circumstances, lifestyle, and health guide your life insurance planning.
Life insurance is not as complicated as it is often portrayed to be. There are essentially two kinds. In most cases the ideal solution is a mix of both.
Term life insurance
Term life insuranceCost-effective in situations where high amounts of coverage are needed for a limited amount of time. Family income replacement and mortgage/debt coverage are common examples.
Only a small percentage of term policies pay out because most people only have term coverage while young when debt or income obligations are high but the chances of dying are minimal. So, hopefully, what you are paying for is only peace of mind.
Most term plans offer the option to convert to a permanent plan regardless of your health status.
Permanent life insurance
Appropriate for well-defined estate planning needs such as tax obligations, business succession, and funeral expenses. Plan types include: Whole Life, Universal Life, and Term-to-100.
Unlike term, permanent coverage is designed and priced with the expectation that most policies will result in a death benefit payout.
As they mature, many permanent plans accumulate cash values accessible to the policy owner. In some situations this can be an attractive wealth accumulation strategy.
A few other optional features of permanent coverage:
- Benefit amounts that increase over time
- Limited premium payment periods