Life Insurance
Life Insurance Information
If you have some interest about Life Insurance, perhaps you may want to know a little history or how long-life insurance has been around.
There are many kinds of life insurance, but they generally fall into two categories: term insurance and permanent insurance. You should also know or at least be aware of the contract terms. Are you aware there is a difference between Insurance and Assurance?
Term insurance is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.
In contrast, permanent (Whole Life) insurance provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full-face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time.
Insurance companies have in recent years developed products for niche markets, most notably targeting seniors in an aging population. One of the more common products out there, a Final Expense policy, also known as burial insurance, is designed to pay for the costs associated with your death and can help relieve families of the anxiety of having to pay for funeral costs.
It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances and financial goals. But remember policies vary with costs, insurability and underwriting. Also there may be tax liabilities on the death proceeds. Have you seen or heard an advertisement promoting "low cost" Life Insurance? Being an educated consumer will help prevent you from enrolling in a plan with a lot of fine print. Just like health insurance, premiums are the same from one agent to another or even if you do all the research yourself.
But remember, the best way to figure out the amount and type of life insurance that makes sense for your particular situation is to talk with a qualified and licensed life insurance professional and we are only an email or phone call away.
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