WHY IS LIFE INSURANCE IMPORTANT: It provides many options for debt repayment, income replacement, funeral expenses, college tuition and estate planning for your family. Without a life insurance policy, your death could spell financial disaster for your heirs and could hurt their financial future.
TERM LIFE INSURANCE: Is an insurance policy that provides a set insurance benefit for a specific amount of time. For example, a 10-year, $100,000 policy would provide a one time death benefit of $100,000 if the death occurred while the policy was in force. After the 10-year period, the policy simply expires. Insurance companies sell term life insurance for different amounts of time such as 5, 10, 20 and 30 year terms. The primary advantage of term life insurance is that it is less expensive than other forms of life insurance. Many companies allow conversion of term life insurance policies to other forms of life insurance before expiration.
WHOLE LIFE INSURANCE: Is an insurance policy that provides a death benefit as long as the policy remains in effect. It has a dividend savings account attached to it, where money is built up and this earns a fixed interest rate, and it can be used to pay the annual premium of the policy once it has time to build up value, usually after 15 or 20 years from the beginning of the policy. This policy has a higher premium, but it lasts your whole life. Buying a life insurance policy can be one of your biggest investments, so please contact us if we can assist you.
INCOME REPLACEMENT: If you are a working spouse, chances are your family relies on your income to pay bills. A life insurance policy can help to replace that income when you are gone.
DEBT PAYOFF: When you die, your family will still owe the debt you have. A life insurance policy can help them pay off that debt.
FUNERAL EXPENSES: Funerals are expensive. Life insurance policies give your family a means of paying for your funeral that won't affect their budget.
COLLEGE TUITION: Left alone, your spouse may no longer be able to fund your children's college savings plans. A life insurance policy can provide funds to pay for their schooling.