Speak with an experienced advisor! (800) 208-4575Many life insurance companies have been in business for over 100 years weathering the storms of the economy throughout the decades with stability and security. What this means to you is that when you purchase a life insurance policy your money is with a secure company that has proven financial stability over many years so the funds will be there when they are needed.
Let’s discuss just a few of the most popular life insurance plans.
Accidental only life insurance policies are policies that pay out for accidental deaths such as automobile accidents, falls, storms, etc. They do not pay for deaths from natural causes such as cancer, heart attack, stroke, or other diseases. These plans are mostly available thru banks or memberships in civic groups at no charge or extremely low cost just for becoming a member. the can offer these free or at such a low cost because they very rarely ever pay out claims either because the insured dies of natural causes or the beneficiary wasn’t even aware of the policy.
A term policy does not last for your whole life but is a temporary policy and only lasts for a predetermined term or time period. Therefore a term policy only pays a claim if the insured dies within that term. After that time or term is over the client has to purchase a new insurance policy to continue to be insured. The insurance rate (premium), is then based on the new age and current health conditions of the person wishing to be insured, A term policy may have a smaller premium at the initial term period but the premium goes up each time the term has to be renewed and there is also the consideration and risk that they may no longer qualify for coverage due to health conditions that have occurred over the years.
Whole life policies cover you for your whole life as long as you make your payments and keep the policy current. It doesn’t matter how long you live the policy will pay to the designated beneficiary.
Whole life plans are a better choice for estate planning and the life of the insured than a term policy. A whole life plan is there when it is needed the most, which is the death of the insured. Remember: the proceeds of a life insurance is non taxable. It pays for accidental deaths as well as for natural causes. With all the plans, (term or whole life), there maybe limitations on the amount paid to the beneficiary for certain conditions with in the first two years. Most if not all companies, (whole life, term as well as accidental) do not pay claims within the first two years if the death was declared suicide. Please contact your insurance professional for specific details.
Most whole life policies have a cash value amount that grows for the life of the policy. The amount depends on the structure of each individual policy and the amounts paid in. Many have a lower cash value for the first few years but then will build as time goes by. Please contact your insurance professional for specific details.
Whole life premiums will usually have a somewhat larger cost of premium at the beginning of the policy but remains consistent for the life of the policy. The rates of the whole life policy are locked in and guaranteed for the life of the policy. This saves the insured money over the insureds life span.
A whole life plan is can be purchased at a rate you can afford and you know the rate will never increase, the benefits never decrease, it builds cash value, is tax free to your beneficiary and most importantly you know it will be there when it is needed the most. Please contact your insurance professional for specific details for the best plan for you and your family.
