Buying the Right Life Insurance
Choosing the right policy is a cinch when you understand insurance products. That is why our insurance experts are eager to help you get started. Filling in the form above will get you one step closer to protecting your family's finances in the event of your untimely death. Following is information about the two primary life insurance policies available: term life and permanent life.
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Term life insurance
A term life insurance policy is one that is purchased for a specified amount of time. For instance, I may buy a $250,000 cash value policy for a twenty-year term. If I die during that twenty-year period, my beneficiaries will receive the face value of the policy. It is designed to cover major financial obligations for the remaining family members.
Advantages of a term policy
By far, term life insurance is a much more affordable policy to purchase. You can buy a larger amount of coverage to protect your family's needs during the most expensive years of your family's life. Some companies will even allow you to convert your term policy into a permanent policy without evidence of insurability at the end of the specified term.
Permanent life insurance
A permanent, or whole life insurance policy, lasts the duration of the policyholder's life. One big difference between it and the term policy is that the whole life policy has a cash build-up program included, which is commonly known as a "cash value account." Furthermore, interest is paid to the policyholder for the money that is accrued in the savings portion of this policy.
Advantages of a permanent life policy
This plan gives your family coverage for much longer than a term policy and it can be used to create a tax-advantaged estate for your family following your death. In order to put this plan together properly, you can request a quote here to consult with one of our professionals waiting to assist you.
Don't waste money on taxes
You can purchase a permanent insurance plan in the name of an irrevocable trust rather than in your own name. By setting up your life insurance plan in this way, you are protecting your loved ones from having to pay excessive taxes. Following your death, the face value of your life insurance policy is taxed as income received unless your policy has been put into a trust.