Life Insurance
The Basics – Life Insurance
Life Insurance policies are designed to give you peace of mind in case the worst should happen. In the event that you are no longer able to provide for your family, the policy will distribute a lump-sum payout to your beneficiaries in what is known as a death benefit. While plans are quite similar there are a few differences between term, whole, and universal life insurance.
If one thing in life is predictable, it is that life is completely unpredictable. It doesn’t matter how many times you write your plans down or commit to something, at the end of the day we can only do so much. Unfortunately, accidents and catastrophic events occur and sometimes they can leave a hole in a family’s life. The loss of a loved one who is also the main source of income for a family can lead to the inability to pay bills. That is why it is important to protect yourself from unpredictable moments in life.
The Whole Life Option
One of the popular forms of life insurance is the whole life option. Often called permanent life insurance, whole life option is a great choice for anyone who is looking for a lifetime of coverage. While higher premium payments are common, the plan offers a more comprehensive benefits package for beneficiaries than most other policies. One added advantage of the whole life plan is that it holds cash value and will continue to increase in value over time, tax-deferred.
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Term-by-Term Insurance
Term life insurance is often touted as a flexible plan for those who want to have more control over their life insurance plan. The policy gives the holder the option to select a specific time period to be covered for, typically 10 or 20 years. Along with this flexibility, is a cost savings component as term life tends to have lower premium payments over the life of the plan as well. It is important to keep in mind that these types of coverage do have an expiration date that you will need markdown. Once the last day of the policy runs out you will need to either extend coverage or sign up for a new plan.
Keep Covered with Universal Life Insurance
Universal life insurance is similar to whole life insurance as it effectively covers a policyholder for their entire life. The part that sets this plan apart from the rest of the permanent life policies is the way the premiums are set up. With universal life, there is the option to raise and lower monthly premium payments at the owner’s discretion. This in turn allows for the flexibility to increase and decrease coverage depending on what is happening in the policyholder’s life. There is also an investment component as it will accumulate cash value with time.
Advanced Insurance Concepts Can Help You Find a Life Insurance Plan
Deciding how you are going to protect your family, should anything ever happen to you, is one of the most important decisions you can make. The agents at Advanced Insurance Concepts are highly skilled and ready to help you through the process of selecting a life insurance plan. To get started with a free consultation, give us a call today at 816-476-8191.