Individual Life Insurance

Your business safety partners

There are many good reasons for purchasing a life insurance policy. Most families don’t make the decision to purchase life insurance until facing a major life-altering event such as getting married, starting a family or purchasing a home. Most of us, at some point in our lives, will realize that owning life insurance is very important to ensure our sense of security. If your loved ones depend on you for financial support, life insurance can help take care of their financial security. In the event of your passing, who you name as beneficiaries can receive a lump sum, tax-free payment to help them replace lost income, pay for their education, pay off debts, and cover your final expenses. A life insurance policy will provide you with the actual ability to have a positive influence on the future of those you love.

Whole Life Insurance

One of the options you may consider is whole life insurance. This product offers financial protection to your loved ones and at the same time, helps you build wealth you can access when you need it. Whole life insurance is a type of permanent life insurance, which stays in effect for as long as you pay the premiums. This means you never have to worry about uninsurability or losing your safety net as you get older. Cash Value When you pay your premium on a permanent policy it’s split between the death benefit and the cash value — essentially an investment product coupled with the insurance policy. How exactly the cash value works depends on the type of policy. For example, in a variable life policy, the cash value acts like a mutual fund, but, with whole life, it’s more similar to a simple savings account. Over the life of the policy, the death benefit shrinks and the cash value component grows until the policy consists entirely of the cash value. You can do many things with the cash value, including taking out a loan, drawing from it for retirement or funding the policy.

Universal Life Insurance

Universal life insurance is a combination of a life insurance policy which combines elements of term life insurance with an investment savings option. Universal life combines the ability to build savings at the same time as providing you a life insurance policy. You decide the amount of insurance you need to protect your family, assets, or your business in the event of your death. Like other types of life insurance, the premium and cost of insurance is calculated based on your age, health, and other risk factors. In addition to the insurance protection offered with universal life, your premiums are invested and have the potential to generate tax-advantaged growth. With this product, you get to choose the investment options within your policy. A portion of the universal life insurance monthly premium is put into the cost of the life policy which will provide the death benefit to your beneficiary and another portion of the premium is invested so it can be used as investment savings. The concept is that the investment will grow over time and eventually may even be able to pay for the premiums of the life portion of the policy.

Term insurance

Term life insurance is a temporary solution that provides life insurance at a fixed rate over a length of time. Common terms for term life are 5, 10, or 20 years, although other options are possible. The longer the term, the more expensive the policy may become since it covers a longer time span, so the risk of the insured dying during the term will increase. So, the younger you are when you term life insurance, the less expensive it will be. Term life insurance is a less expensive option, the risk is far less than whole life insurance or universal insurance. There are no cash values in the policy, therefore the premiums are strictly for the life insurance death benefit. This option will take care of the basics of providing the money your dependents may need in the event of your sudden death. Term life insurance does not build cash value or have the tax benefits like universal life insurance or whole life, but it can be a great option for someone who would like life insurance, but can’t afford the higher premiums.