Life insurance will protect your family if tragedy strikes.
Life insurance is one of the most important purchases you will ever make. In the event of a tragedy, life insurance will help pay bills, finance future needs, cover college expenses, and protect your spouse’s retirement plans.
What type of policy do I need?
There are multiple options for life insurance, and each policy contains different options ensuring the policy you purchase is unique to you and your family.
Term Life: This is the most affordable type of insurance and is designed to offset any temporary needs. This policy only pays the benefit if you pass away during the term on the policy.
Whole Life: Provides lifelong protection if you pay the premiums. Because it is designed to last a lifetime, the policy accumulates a cash value, which can be withdrawn after a certain amount of time.
Mortgage Life: A mortgage life insurance policy is a term life policy designed specifically to repay mortgage debts and associated costs in the event of the death of the borrower.
These policies differ from traditional life insurance policies. With a traditional policy, the death benefit is paid out when the borrower dies. However, a mortgage life insurance policy does not pay unless the borrower dies while the mortgage is still in existence and the beneficiary is the mortgage lender. The life insurance policy term matches that of the mortgage, and the death benefit is usually reduced each year to correspond with the new amortized mortgage balance outstanding as mortgage payments are made.
Universal Life: Universal life insurance is permanent life insurance (lasting the insured’s lifetime) that has an investment savings element and low premiums similar to those of term life insurance. Most UL insurance policies contain a flexible-premium option. However, some require a single premium (single lump-sum premium) or fixed premiums (scheduled fixed premiums).
Index Universal Life: Indexed universal life insurance is a type of permanent life insurance, which means it has a cash value component in addition to a death benefit. The money in your cash-value account can earn interest based on a stock market index chosen by your insurer. Funds don’t earn a fixed interest rate but typically come with an interest rate guarantee.
Return of Premium Life: Return of premium life insurance is a type of term life insurance — meaning the policy provides coverage for a specific period. If you die during that time, your beneficiaries will receive money from the insurance company in the form of the death benefit.
With a return of premium policy, any money you paid for the insurance is refunded tax-free at the end of the term.
How much should I purchase?
There are many factors to consider when calculating the proper amount of life insurance to buy. Here are just a few questions you should ask:
- How much money would my family immediately need to pay outstanding debts or funeral expenses?
- How much do I owe on my mortgage?
- How much money would it take for my family to maintain their standard of living?
- How much do I currently have saved to assist with these expenses?
Our agents will walk you through these questions and many others to help you determine how much life insurance is adequate for you and your family.