Life Insurance is crucial for people and families to have in place. It provides for your loved ones when it is needed most. Whether you are a parent planning for your children’s future well-being or preparing for your retirement, life insurance can help you.
Life Insurance comes in Two Types:
Temporary Life Insurance (Term Life Insurance):
Term Life insurance is typically used for short term or temporary needs; for example, to provide financial protection while raising a young family. Term Insurance provides financial stability in the event of your death so that those who depend on you will have the financial means to:
- Cover debts such as mortgages, car loans, business and personal loans
- Improved option to Mortgage Insurance
- Replace the income you provided for your family
- Provide for your children’s education expenses (for example, future school funding)
- Funding for your spouse’s retirement plan
Term life insurance comes typically comes in 10, 20 or 30 year terms. Premiums are guaranteed for that term and they will renew at a higher rate for the next period.
Permanent Life Insurance (Universal Life and Whole Life):
Permanent life insurance provides coverage for your entire life, not just for a specific timeframe. Your premiums, in most cases, will remain the same during the time you are covered. With Permanent Insurance, you will have lifelong life insurance coverage with no need for future medical reassessment, unless you choose to increase your life insurance coverage or change your policy. There are two types of permanent life insurance: Whole Life and Universal Life. Both types of policies offer life insurance coverage until death with the added benefit of investment cash values that carry tax benefits which can be used through the policy owners’ life. Permanent life insurance offers many benefits as part of your financial plan, including:
- Estate planning
- Leaving a legacy to your partner, family and loved ones
- Tax benefits, and cash values
- Retirement savings, including the Insured Retirement Program
Life insurance, both term and permanent, can be personally owned or corporately owned. Corporate owned life insurance is used for the needs of a buy/sell agreements, key person insurance and the Insured Retirement Program.