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Life Insurance
provides a tax-free payment
upon death to your named
beneficiary.
What would your financial
future look like if
you, your spouse, or
business partner died?
Life
Insurance is used as
a cost-effective way to
protect future financial
obligations after the death
of an individual. Your
greatest asset is your
ability to earn income. If
your income suddenly stopped
for the next 10 or 20 years,
how would that affect your
loved ones? The most commons
uses of life insurance
are to cover debt(s),
income, and funeral
expenses. There are also
many other common uses to
life insurance (i.e.;
financial/investment
planning, funding buy-sell
agreements among business
owners, covering capital
gains or estate taxes,
etc..).
If you’ve ever wondered how
a widow carry’s on
financially after a loved
one has suddenly passed
away, in most cases it is
because of proper life
insurance planning. Life
Insurance is an
unselfish gift because it
ensures those that you love
will not suffer financially
after you die.
LifeInsuranceAdviser.com
offers only the best life
insurance options with
coverage tailored to meet
your individual needs. There
are two general categories
of life insurance
which can be broken down
into either; term
insurance or permanent
insurance. Permanent
Insurance is offered in a
few different forms (whole
life, universal life, and
term to 100).
Types of Insurance:
Term
Insurance – offers
insurance for a stated
period of time. This is the
most cost effective method
of covering temporary needs.
Common types of term
insurance include Term 10,
Term 15, Term 20, Term 30,
Term to 65, and Term to 75.
Term policies offer lower
initial premiums although
premiums increase at the end
of the term. It is extremely
important to ensure that
your term policy includes
the option to convert. A
convertibility option is
included in most term
policies and ensures that
you have access to change
your term policy to a
permanent policy
non-medically. This is
especially important should
you develop a health issue
after you purchase your term
policy.
Permanent Insurance
– offers insurance with
higher initial premiums
although premiums are
generally locked in for life
with coverage that extends
for the life of the insured.
This type of insurance is
also known as “lifetime
coverage”. The 3 types of
Permanent policies include:
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1) Whole
Life –
this permanent
coverage has
guaranteed
insurance
proceeds with
level premiums.
These plans can
sometimes gain
in value
depending on
investment
options. These
policies include
cash surrender
values which
grow in value
over the life of
the contract.
These policies
are structured
in a way that
charge a higher
initial premium
than required in
the early years
of the policy,
then in the
later years of
the policy when
the actual cost
of insurance is
more than the
actual premiums
being collected
from the
insured, the
overpayments in
the early years
are used to pay
the
differential.
Upon
cancellation of
this type of
policy, cash
surrender values
are paid out to
the policy owner
to help account
for overpayment
in the early
years of the
policy.
2)
Universal Life
– offers
permanent
coverage with
level (or
increasing)
death benefits
and with level
premiums.
Although these
premiums are
initially higher
than those of
term policies,
they do not
increase in cost
over the
lifetime of the
policy. What
separate’s this
permanent plan
type of coverage
from the other
two types, is
the option to
invest money
tax-sheltered.
Any monies that
you opt to
invest can be
withdrawn
typically at any
time. Any money
invested into
the
tax-sheltered
account of the
policy would be
paid-out
tax-free at the
death of the
insured which
makes this an
attractive
investment
option for many
people.
3) Term to
100 –
although the
name suggest it
is term
coverage, it is
in fact lifetime
coverage with
guaranteed level
premiums. This
type of policy
offers no “bells
or whistles” and
simply is
lifetime
insurance
coverage with
guaranteed death
benefits and
guaranteed
premiums. |
For more information
please contact:
info@lifeinsuranceadviser.com
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Just wanted to let
you know that Dennis and I were more
than pleased to have you look after our
Life Insurance needs. We felt
immediately at ease when you met with us
and explained the different policies –
thanks for using terms that we could
understand.
You truly are a
professional in every sense of the word
and I will be recommending you to
friends and family. Thanks again, for
helping us to feel confident in our
decision to purchase Life Insurance
through LifeInsuranceAdviser.com. |
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