Life insurance provides either a stated sum or a periodic income to your designated beneficiaries upon your death. Certain "life events" such as marriage, the birth of a child, or a change of jobs trigger the need to buy or add life insurance. Deciding that you need life insurance is the first step. The next step, deciding what kind of life insurance, is where we can help. We offer a variety of policies to fit a variety of needs.
Term Life Insurance
Term Life insurance provides protection for a specific period of time, usually 5, 10, 15 or 20 years, and pays the benefit only if the loved one passes away during the term. If you are interested in short term coverage or coverage for a specific need such as college tuition or the purchase of a home, Term Life insurance would suit you. It is also an affordable option for young people buying insurance for the first time. Term Life insurance does not build any cash values and can get more expensive as you get older.
Universal Life
Universal Life insurance is similar in design to Term Life insurance but has an additional feature that allows you to put extra funds into the policy over and above the life insurance cost. These excess funds are entered into an interest bearing account where they grow on a tax-advantaged basis. You may accumulate significant cash value over the years and, in some circumstances, "borrow" the appreciated funds without paying taxes on the borrowed gains. As long as the policy stays in force the borrowed funds do not need to be repaid, but interest may be charged to your cash value account.
Whole Life
A traditional Whole Life insurance policy provides both a death benefit and a cash value component. You can borrow this cash value to pay for unforeseen expenses, education or even to supplement retirement income. Many Whole Life insurance policies let you participate in the profits of the insurance company by receiving "dividends" and let you choose what you want done with your dividends, from building cash value, to buying additional "paid up" amounts of Whole Life insurance coverage, to even helping pay your policy's premiums.
Variable Life
A traditional Variable Life policy provides both a death benefit and cash value component, but differs from a Whole Life insurance policy because it allows you to invest the cash value in investment portfolios selected by the insurer. Your invested portfolio may fluctuate and may worth more or less then your investment. If you accumulate significant cash value over the years, you may “borrow” the appreciated funds without paying taxes on the borrowed gains. As long as the policy stays in force, the borrowed funds do not need to be repaid, however, interest may be charged to your cash value account. However, “borrowed” funds may reduce the death benefit of the policy and may require additional premiums invested to prevent policy lapse.
Life insurance policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Your licensed financial professional can provide you with costs and complete details.