What is
Life Insurance?

Life insurance plans provide funds that can be used to cover major expenses, such as mortgages or college tuition, as well as monthly bills and day-to-day living expenses. If your spouse would need to start a new job or increase work hours, the money could also help pay for childcare expenses.

The amount of coverage you will need will determine the price of the product. We offer both affordable life insurance products and premium, more expensive products which can also act as an investment account.

Term life insurance and whole life insurance are the most common types of life insurance products.

Once a life insurance company is notified of a death, they will begin the process of setting up a payout to beneficiaries, who are named by the policyholder when the policy is created.

Payout options include lump sums, installments, annuities and retained asset accounts. Talk to your insurance agent about payout options when selecting your policy.

The amount of life insurance you need will be based on your family situation and financial goals. Our Policy Guide agents can help you put the pieces together.

Types of
Life Insurance

Life insurance is divided into two categories:

Permanent Life Insurance
Universal life insurance and whole life insurance are types of permanent life insurance policies, which means they provide a lifetime of coverage and accumulate a cash value that you can borrow against.
Term Life Insurance
Life insurance companies also sell term life insurance. These policies are limited to a set period and paid out if the policyholder dies during that coverage time.

When figuring out which route to take, we can help you calculate the amount of coverage you will need, depending on your situation and goals.

You will also likely be required to take a medical exam depending on your age, health and the coverage amount you’re seeking.

Term Life Insurance

With a “level term life” policy, you’ll pay a set amount per month or year for the duration of the policy. The healthier and younger you are when you take out the policy, the less you will pay in monthly premiums. If you’ve waited a bit, don’t worry. Our guides will work with you to find the best solution.

Term life insurance policies expire at the end of the set term. At that point, you do not receive a payout. Think about it like car insurance. When you no longer need it, you cancel your policy, and the financial agreement ends. However, some people will opt to convert term policies into a permanent policy when it expires.

Consider Term Life Insurance If:

Your children would need help paying for college
You have a mortgage or other significant loans, such as car loans
You have a retirement savings strategy

Whole Life Insurance

Permanent insurance policies become more valuable over time as your “investment” grows. Because of this, the monthly premiums can be up to 20 times more expensive than term life insurance.

Whole life policies have a fixed premium so you pay the same amount every year. Your insurance plan will put part of your premium into a high-interest bank or savings account. You can borrow from it or surrender the policy for cash if you have a financial emergency.

Universal life policies offer a bit more flexibility because the policyholder can vary the amount of the death benefit and, therefore, the premiums they pay. However, the policy still accumulates interest and has a cash value. Some policyholders use the cash value of the insurance to pay their premiums.

Consider Whole Life or Universal Life if:

Want to grow the value of your insurance
Prefer to have coverage that lasts a lifetime
Would like a cash value component to the insurance that can be taken out later
Can afford more expensive premium payments
Want life insurance to be part of your long term-financial strategies

Final Expense Insurance

Besides the funeral and burial costs, this type of insurance can also cover medical bills, credit card debt and other end-of-life expenses.

Some life insurance policies will cover this. If you have a term life policy, your loved ones can use the payout to pay for your funeral. If you have a term life policy, your loved ones can use the payout for your funeral.

If you do not have a life insurance policy, you can also get a separate policy to cover funeral/final expenses.

Our “guides” are ready to talk about your life insurance options and life insurance costs. We want to put you at ease in finding the best policy for you and your family. Call 1-888-414-4547 for more information.