Life Insurance

The Family Need...

Life insurance is a necessity that few can live without. The death of a loved one cannot only cause emotional loss, but can cause substantial financial loss. With the loss of an economic provider, a family may not be able to sustain its standard of living. Mortgage payments, automobile loans, credit cards, and other debts may overwhelm the remaining family members. A well-organized life insurance program can give you peace of mind.

Business Needs...

Businesses have unique life insurance needs to protect or conserve the assets of a business in the event of an unforeseen death. Every business has needs that are different depending on the structure of the organization. Two of the most common needs are Key Employee or Buy-Sell needs.

Two Basic Types of Life Insurance

Life insurance policies come in many different forms and plans each specifically designed to meet your individual goals. With the variety in policy types, there are two basic forms: Permanent and Term Life Insurance.

Permanent Life Insurance

Permanent Life Insurance plans (including Universal Life, Whole Life, Index Life, and Variable Life) are designed to give clients life insurance coverage that can last permanently throughout the policyholder's life. Policyholders paying a consistent premium are able to keep a permanent policy in force until the policyholder chooses to cancel coverage or until death. With permanent life insurance, policyholders pay a higher premium in the first few years. Portions of the premiums being paid into the policy accumulate in an account earning tax-deferred interest. As the policy ages, the account value (the extra premiums that have been set aside) help keep the policyholder's payments level. With most permanent life insurance policies, the policyholder can surrender the policy at any time and claim the policy cash value (a policy's account value minus any surrender charges).

Term Life Insurance

Term life insurance plans offer life insurance for a specific number of years. Most term policies offer premiums that are level for 10, 15, 20 or 30 years. Because term life insurance policies offer coverage for a fixed period of time, term insurance is typically less expensive than permanent coverage. Policyholders can receive high coverage amounts for a fraction of the permanent plan cost. Term insurance can be a favorable alternative for clients needing life insurance for a short period of time (less than 30 years).

Term Versus Permanent

Clients have often advised "Buy Term, Invest the Difference." This is a simplistic and often incorrect viewpoint. Although term insurance can initially be less expensive, it may not be the most economic choice in the long term. The truth is, there is no BEST type of insurance policy. Every client has a different financial situation and financial need. The best insurance plan is the one that best fits your needs.