If you were pass how would your family pay for the mortgage, your children’s tuition, or be able to enjoy the life they were living? One of the easiest ways to settle the financial pain is by having life insurance protection. Life insurance should be at the foundation of your insurance and financial plan, and your agents at Insurance Resources can help you determine what coverage is best for your needs.
What types of policies are available?
The two most common types of life insurance are term life and whole life insurance.
Term Life Insurance
Term life insurance provides coverage for a specific period of time (or “term”). The terms are usually 10, 15, 20, or 30 years and the premium you pay remains the same throughout the entire term. At the end of the term life policy if the insured has not passed, no money is paid out to the beneficiary. The insured also can’t borrow against the policy. Term life insurance policies are perfect ways to protect your family against a financial obligation, such as a mortgage or business loan.
Whole Life Insurance
Whole life insurance is a type of permanent life insurance. Like term life, your premium payments are the same over the entire policy life. However, unlike whole life, there is not a term and the premium payments are almost always higher. Whole life policies typically remain in effect until age 99, and if you are still alive at this point in time they return the cash value to you. Another unique characteristic of whole life insurance is the guaranteed cash value. As you pay the insurance your cash value continues to grow tax-deferred until it matches the face value of your policy. A great feature of most whole life policies is the ability to take loans against the policy in time of need. Also, your cash value usually grows at a certain interest rate. If you experience gains, you can use them to either pay the premiums or invest in more insurance coverage.
What should I ask my agent?