LIFE INSURANCE SOLUTIONS

If you have financial dependents, the peace of mind that comes from knowing your loved ones will be taken care of is invaluable. We can help you make the right decisions regarding your life insurance policy.

 

If you have financial dependents, the peace of mind that comes from knowing your loved ones will be taken care of is invaluable. The purpose of life insurance is to cover some or all of the loss of income that results if you pass away. While it is assumed that families and those considering starting a family are the only ones who need life insurance, that isn’t always the case. Young single adults supporting an elderly parent and elderly adults with no other means to pay funeral expenses may want to consider life insurance as well.

 

There are different types of life insurance: universal, variable universal, whole life, and term life. Universal and variable universal life insurance can be described as a combination of a term life insurance policy and a tax-deferred interest accumulating savings account. A whole life insurance policy covers one’s entire life, as opposed to for a period of time, and provides a return on a portion of the premiums invested by the insurance company. There are several types of whole life insurance:

 

• Traditional

• Interest-sensitive

• Single-premium

 

Term life insurance policies differ from universal and whole life insurance policies in that they do not build cash value or have the same tax benefits. However, they are a good budget-friendly option, particularly for those who are young and healthy and for those desiring a simple, straightforward life insurance plan that provides for beneficiaries. Term life insurance policies are also an option for business owners who wish to cover the life of key employees with set number of years until retirement. Term life insurance policies provide protection for a specified time, ranging from 1 to 30 years, and can be renewed.

 

When shopping for life insurance policies, ask yourself these basic questions:

 

What do my dependents need in order to cover day-to-day and long term expenses?

 

Do I need my life insurance policy to help pay for major expenses, such as college tuition?

 

Do the life insurance companies I am investigating have a good claims payment history, competitive pricing, and excellent customer service?