What Is Life Insurance?
Life insurance is the foundation of financial security for you and your family.
- It provides funds needed to cover the cost of mortgages; college tuition; retirement; and final expenses
- It provides funds needed to help businesses pay heirs their share of the business while enabling surviving partners to continue the business
- It provides funds for charities and beloved causes; reimburses estate taxes; and leaves a legacy for children and grandchildren
How We Help
- We will provide options so that you understand which insurance meets your needs
- We will work within a comfortable budget
- We will review and modify your coverage as your needs change over the years
When Do I Need Life Insurance?
When your death would financially impact your family or your business.
What are the Different Kinds of Life Insurance?
There are 3 basic types of life insurance.
Level Term Insurance: no cash values and guaranteed premiums for a set # of years.
Universal Life: a type of permanent coverage that may or may not have cash values and may or may not be guaranteed to last forever.
Whole Life Insurance: permanent coverage that will last for life expectancy with guaranteed cash values. These policies may or may not have dividends and may be quick paid.
There is a place for each of these coverages in your portfolio. Speak with a life insurance specialist to learn which type of policy works best for you and your family.
How Do I Know How Much Life Insurance I “Need” to Protect My Young Family?
The better question is what do I “want” to protect the people I love. A rule of thumb for a young family might be to get as much coverage that if invested conservatively, would equal your income. Be proactive, do this while you are young and healthy. and know that the group life insurance provided by your company is not enough to protect your family.
Can a Life Insurance Policy be Used to Fund a Long Term Care Need?
Do not get rid of that term policy until you find out the options for using that policy to fund long term care in the future. It may be worth keeping that policy especially if you have no other long term care insurance.
Can My Universal Life Insurance Policy Run Out?
That is one of the biggest areas of confusion with Universal Life Insurance polices. Some and mostly the newer policies are guaranteed to last to a certain age. Policies written in the 80’s, 90’s and early 2000’s were designed with projected interest assumptions often times with much higher projections than what has actually been credited to these policies. Insured’s absolutely need to request a current policy illustration to see how long their policies are projected to last. If the projection has the insurance running out before the insured desires then either the premium payments must be increased or the death benefits decreased to be sure to have coverage as long as it’s needed.
What is the Difference between Universal Life and Variable Life Insurance?
Variable life insurance is based on the performance of mutual funds and the stock market. It was designed for clients and financial advisors who wanted a life insurance policy to also be an investment tool. Unfortunately, the market has been very unreliable and many of these policies have not performed as originally hoped.
Variable policies must be reviewed and projected at new hypothetical interest rates to understand how long coverage will last.