LIFE INSURANCE
Protect The
Life you love.
You’ve put in tremendous effort to create a life filled with happiness alongside your loved ones, and now it’s crucial to safeguard it all. No need to worry about the amount or type of life insurance you require; we simplify the process for you.
Life insurance tailored perfectly to your unique needs and circumstances.
Because everyone’s circumstances and objectives vary, life insurance policies are crafted with individuality in mind. Depending on your requirements, life insurance can serve as a safety net for unexpected events or serve as the cornerstone of a well-thought-out financial strategy, affording you enhanced financial flexibility for life’s important milestones, such as funding education, expanding your business, and ensuring a comfortable retirement with increased income.
Let's talk about why life insurance is so important.
What is life insurance, exactly?
Life insurance operates on a straightforward premise: you make regular payments, known as premiums, and upon your passing, we provide a tax-free payout to your selected recipients, which can include your preferred charitable organizations, if you wish.
Why do I need a life insurance policy?
Life insurance serves as a financial safeguard, addressing various costs such as mortgage payments, outstanding debts, educational expenses for your children, and replacing lost income in your absence. Moreover, it facilitates the efficient transfer of wealth to the next generation while minimizing tax implications. Depending on the specific type you choose, it can form the cornerstone of a robust financial strategy and assist with expenses throughout your lifetime.
Isn't life insurance through my work enough? Or How Group Coverage Works?
Group coverage, as implied by its name, provides coverage as long as you remain part of the group. However, once you depart the group, in most instances, you cannot carry the coverage with you. Additionally, employer-offered life insurance often falls short of providing the necessary coverage amount, and the premiums may increase annually, resulting in higher costs over time.
What if I need a life insurance policy fast?
Certain insurance companies provide accelerated underwriting, and you might qualify for this option. This streamlined underwriting process harnesses data to expedite decisions and removes the necessity for extensive medical documentation, potentially resulting in same-day approval for your life insurance application. Furthermore, in some cases, a physical or medical examination may not be required. Connect with a reputable advisor to explore this further.
Myth Debunked: Isn't life insurance very expensive?
How much does life insurance cost?
Numerous factors can influence the price of an insurance policy. That’s why it’s crucial to collaborate with a qualified advisor who comprehends your specific circumstances, requirements, and financial constraints in order to suggest the most suitable choices for you. In broad terms, your monthly (or yearly) premiums are determined by factors such as the type and coverage amount of your life insurance, your age, health, and whether you opt for any additional riders that align with your objectives and needs.
What types of life insurance options are available?
Whole Life Insurance
Secure lifelong protection while accumulating a guaranteed cash value that continues to grow regardless of stock market fluctuations. This value can be utilized for various purposes, such as funding your children's education, enhancing your residence, expanding your business, making a down payment on a new home, or supplementing your retirement income.
Term Life Insurance
This is the easiest way to begin your journey with life insurance. Term life insurance provides coverage for a predetermined period, typically 10, 15, 20, or 30 years. When this term concludes, your policy also comes to an end. However, should your needs evolve during this time, you'll have the option to transition to lifelong coverage.
Variable Universal Life Insurance
With variable universal life insurance, you not only receive lifelong protection but also have the freedom to decide how your policy's cash value is invested in the stock market, giving you the opportunity to potentially enhance its growth over time.
Indexed Universal Life (IUL)
Indexed Universal Life (IUL) insurance is a permanent coverage option, ensuring it remains in effect throughout your lifetime while accumulating cash value. Unlike some other universal policies that solely rely on non-equity earned rates for cash value growth, an IUL policy permits cash value growth through an equity index account. As is the case with all universal life policies, once your cash value reaches a sufficient level, you have the option to utilize it to reduce or potentially completely cover your premiums without diminishing your death benefit.
Questions about life insurance? We've got answers.
Our partnered advisors will work closely with you to attain a comprehensive grasp of your requirements, offering you an accurate quote. Furthermore, they will guide you in selecting the appropriate type and coverage amount of life insurance to guarantee the financial security of your family in the event of unforeseen circumstances.
It’s simple. Term life insurance provides a cost-effective means to secure the protection you need for a specific period. In consultation with your advisor, you determine the right coverage amount and duration from the available term choices. However, once the chosen term concludes, your coverage also ends. If you’re looking for more permanent protection, you may wish to explore whole-life insurance, which remains active for your entire lifetime and includes living benefits that can be utilized at different stages of your life journey.
Certainly. Whole life insurance offers the opportunity to build dividends, which can be received as cash, used to pay premiums, or reinvested to increase coverage. Likewise, whole, universal, and variable universal life insurance policies accumulate cash value over time, furnishing you with a versatile asset that can serve multiple purposes during your lifetime.
Permanent life insurance represents a lifelong coverage alternative, setting it apart from term life insurance. Typically, permanent life insurance falls into three main categories: whole life, universal life, and variable universal life. Irrespective of the time of your passing, all these policies assure a death benefit for your chosen beneficiaries. Furthermore, permanent life insurance policies amass cash value over time, offering a versatile asset that can be tapped into for various purposes as required. Notably, whole-life insurance may even provide an opportunity to earn dividends.
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Following your advisor’s assessment of your required coverage, you will navigate through an application process, which may or may not include a medical examination. Thanks to modern technology, some insurers can expedite coverage approval within just a day or so. Each type of insurance (whole life, universal life, and variable universal life) offers distinct premium options, enabling you to choose the most appropriate one for your needs.
Over time, your policy has the potential to accrue cash value, serving as a versatile asset within your financial portfolio, accessible whenever required.
In the case of a whole-life policy, there’s the possibility of earning dividends (though they are not guaranteed, most mutual companies have consistently paid dividends annually since their inception). Reinvesting these dividends into your policy can expedite the growth of your cash value and enhance your death benefit.
Upon your passing, the insurance company will disburse the original death benefit, along with any accumulated dividend amounts within the policy, to your designated beneficiaries.
Term life insurance is akin to renting a home. You make monthly rent payments (insurance premiums), and once your lease (term) expires, you simply move on (without ongoing coverage to protect your loved ones), leaving no financial assets behind.
On the contrary, permanent life insurance is comparable to buying a home. Each mortgage payment (insurance premium) contributes to building equity (the cash value of your policy). When you invest in premiums for permanent life insurance, you’re actively growing an asset during your lifetime. Over time, your policy matures into a valuable asset that you own.
Due to the added benefits of permanent life insurance, it generally comes at a higher cost compared to an equivalent amount of term insurance for the same individual.
When considering permanent life insurance, you have three choices, each tailored to provide the protection you need: whole life, universal life, and variable universal life. All three options provide lifelong coverage and the potential to build cash value over time, which you can access for any purpose whenever the need arises. Additionally, whole life insurance offers the extra benefit of earning dividends, which can be withdrawn as cash, applied toward premiums, or used to secure additional coverage.
Permanent life insurance should not be regarded as a conventional investment, but it offers valuable advantages that can bolster your financial security throughout your lifetime. Permanent life policies have the potential to accrue cash value, typically growing on a tax-deferred basis. Additionally, you can borrow against the policy, usually without incurring taxes, and you are not obligated to repay the loan; instead, the outstanding amount is deducted from the total death benefit upon your passing.
This cash value can function as a readily accessible source of funds, especially during economic downturns, as its value remains stable despite market fluctuations. Furthermore, permanent life insurance can serve as an additional income stream during retirement. In the event of your passing, the death benefits are typically transferred to your family income tax-free in most cases, providing essential financial support.
Incorporating permanent life insurance into your comprehensive financial plan and investment strategy can offer a dependable and secure source of funds, safeguarding your financial well-being over the long term.
The cost of your insurance can vary considerably due to the wide array of available choices. Your monthly or annual premiums will depend on several factors, including the details of your policy, the coverage amount, as well as your age and overall health.
Are you eager to begin? Get matched with an advisor today to get started.
When you make your insurance premium payments, a portion of the payment is allocated to cover the costs of insuring you, while the remaining portion goes toward your provider’s operational expenses and contributes to the cash value of your policy. The growth of this cash value is contingent on your insurance company’s performance, and the rate of return can vary depending on the company and policy type.
Whole life insurance stands out as a stable financial asset within your overall financial plan, as its cash value remains impervious to market declines. This cash value offers several advantages, including the ability to borrow against it without the obligation for repayment and exemption from income tax. Moreover, it can serve as collateral for other investments, providing a safeguard against fluctuations in the stock market.
Typically, it takes several years of consistent premium payments for the cash value to accumulate to a substantial amount. Once this threshold is reached, you can utilize the cash value for various purposes. However, it’s crucial to note that withdrawing funds will reduce the death benefit associated with the policy.
Numerous factors influence the pricing of life insurance, encompassing age, gender, tobacco usage, overall health, and coverage amount. However, as a general rule, permanent life insurance is notably more expensive than term life insurance due to its broader range of benefits and versatile applications. Additionally, whole life insurance typically carries higher rates than universal life insurance. While individual policy costs may differ, the following charts outline typical rates for healthy male and female nonsmokers at various ages. It’s essential to recognize that regardless of the type of coverage you seek, younger individuals typically pay lower premiums.
Upon the insured individual’s passing, the beneficiary must follow specific procedures to notify the life insurance company and complete the necessary documentation. This typically involves submitting essential documents, such as a copy of the death certificate, to initiate the claims process. Once the claim has been received and processed, the insurer will reach out to the beneficiary to discuss the payout and present various options for how the beneficiary would prefer to receive the funds.
The timeline for receiving the death benefit can vary considerably, primarily dependent on the promptness of document submission. On average, you can expect to receive the payout within a range of one week to one month or potentially longer. It’s crucial to note that, in most instances, the lump sum received as the death benefit is exempt from income tax.
If you’re ready to secure lifelong coverage, take the initial step by connecting with an advisor today. We can match you with a professional who can assist you in making the right insurance choices to meet your specific needs.
