Life Insurance 101

We want you to make the best decision possible when thinking about protecting your family in the event that something happens to you. We're going to teach you about some information that may help you when purchasing Life Insurance.

What is a life insurance policy?

A life insurance policy is a legal contract between you (the insured/policy holder) and the insurance company (also known as the insurer). This contract establishes the terms, conditions and amount that a company will pay to your beneficiaries, upon your death.

Why should I purchase a life insurance policy?

Generally, life insurance is not for you, but for the people that you're leaving behind. It will be used to protect your loved ones at the worst time in their lives. Imagine if you do not come home today, how their lives would change financially and emotionally. There would be a great burden coming from the bills and loss of income that they shouldn't have to worry about. Life insurance can guarantee that your family will be financially okay during this uncertain event in their lives.

What is life insurance used to protect?

Just imagine if you didn't come home today what bills would continue to be due. Let's face it, all of the companies you owe money to are not going to give your loved ones a grace period or loan. Life insurance is generally used to maintain your family's quality of life in the event of your absence. Besides the regular bills, you also need to consider events like your children's college, your funeral, and your spouse's eventual retirement.

We would love to come out and assist you in determining the right amount of coverage. We all want to make sure your loved ones have enough protection.

We can offer more than just a lump sum benefit to your surviving love ones. We can offer a lump sum and also a monthly income stream.

Term Life Insurance
Term life insurance provides coverage for a limited period of time. After that period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis. Most clients use this to cover their mortgage, dependent care, college or give them temporary coverage. The most common terms are 10, 15, 20, and 30 years. With all of our term plans, your prices can never increase in your initial term period.

Please also visit the Return of Premium Term Insurance page.

Permanent Life Insurance
Permanent life insurance is a form of life insurance such as whole life or endowment, where the policy is for the life of the insured, the payout is assured at the end of the policy (assuming the policy is kept current) and the policy accrues cash value.

This is compared with Term Insurance where insurance is purchased for a specified period (typically for level periods such as 10, 15, 20 and 30 years) where a death benefit is only paid to the beneficiary if the insured dies during the specified period.

Permanent life insurance originally was offered as a fixed premium fixed return product known as whole life insurance also known as cash surrender life insurance. This offered consumers guaranteed cash value accumulation and a consistent premium. Consumers later wanted more flexibility which was offered in the form of Universal life insurance allows consumers flexibility in when premiums are to be paid and the amount that they would be. Universal life policies also allowed consumers to permanently withdraw cash from the policy without the interest associated with the loan provisions in whole life policies. Universal life policies retained the fixed investment performance of whole life policies.

Whole Life
Whole Life Insurance, or Whole of Life Assurance (in the Commonwealth), is a life insurance policy that remains in force for the insured's whole life and requires (in most cases) premiums to be paid every year into the policy.

Universal Life
Universal Life offers a flexible premium policy to meet your changing needs. It is designed to provide cash accumulation, and provide guaranteed coverage during the various No-Lapse periods provided No-Lapse requirements are met. Universal Life can be customized with many options and riders.

Accidental Death Term with or without Return of Premium Insurance
Accidental Term Insurance provides coverage for a certain period of time. It only provides death benefit coverage if you die during an accident and not of naturally cause. We have a Return of Premium Accidental Death policy. Ask us about this policy.

We are your local Life Insurance Agency. We would love to setup an appointment, visit with you and answer any questions you may have.