Life Insurance

The primary purpose of life insurance is to provide cash for your beneficiaries in the event of your death. There are a number of factors that determine the cost you pay for life insurance including:

• Age
• Health
• Tobacco use
• Occupation
• Hobbies

There are two basic types of life insurance needs: temporary and permanent.

Term Life Insurance (Temporary) needs include home mortgages or short-term debt reduction, family income and educational expenses and can last as little as one year or last 20 to 30 years or longer. Term insurance is the most cost effective method of insuring many short-term needs. There are a variety of plans to choose from, ranging from an annual renewable term to a level term plan that could last 5, 10, 20 or 30 years.

Cash Value Life Insurance (Permanent) needs include those that last for your entire life or potentially for periods of 15 years or more. Permanent insurance needs include final expenses, funds to cover estate taxes and retirement savings protection. Cash value life insurance is designed to last an entire lifetime. Most products provide coverage until age 100 or later. The premium for this type of insurance is higher than term insurance during the early years of the contract when compared to term life insurance. The premium that is not used to cover expense or the cost of insurance is invested by the insurance company. That investment builds a cash value that increases with time. That cash value can be borrowed to:

• Fund a business or investment opportunity.
• Pay education expenses, such as college.
• Enhance your retirement income.
• Pay emergency medical expenses.

There are several types of cash value life insurance, including whole life, universal life and variable life. Whole Life insurance provides coverage for as long as you live. Universal Life is a flexible premium life insurance product. The death benefit can be increased or decreased as defined in the policy without having to buy a new contract. Variable Life insurance can be structured as whole life or as universal life insurance. The unique feature of variable life is that the cash value is dependent on investment performance.

If you are interested in obtaining more information or a quote, please contact us.