Life Insurance
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What is Life Insurance?

With work, baseball games, family dinners, and hobbies consuming most of our time throughout the day, the last thing on anyone’s mind is life insurance. Most people don’t carry any type of life insurance unless their employer provides it. Sadly, this means that if the unexpected does happen, many families are left in an unfortunate situation and struggle to barely scrape by.

A life insurance policy is well worth the small investment to ensure your loved ones are taken care of if the worst happens. Typically, the contracts will cost you a premium payment in exchange for a lump-sum payment, known as a death benefit, that will be disbursed to beneficiaries. The type of coverage that best fits the policy owner depends on the needs and goals of that individual. Term life insurance will provide protection for a set period, while whole and universal life insurance offers lifetime coverage.

The Benefits of Life Insurance

As mentioned above, most people don’t think life insurance is worth paying because they assume nothing bad will ever happen to them. Unfortunately, bad things happen every day, and accidents do happen. Life insurance exists to provide for your family if you are no longer around.

Most life insurance policies require a minimal premium payment while providing a substantial amount of money in return if ever needed. Coverages can range as high as $1,000,000 or as low $5,000 – $10,000. The good thing is that no matter the amount you choose, the death benefit that beneficiaries receive is generally income tax-free.

Term life insurance

Term life insurance was designed to provide financial protection for a specific time, typically 10 or 20 years. One benefit of this policy is that it provides constant premium payments that tend to be less expensive than permanent life insurance options. It is important to remember that once the time period expires, you will need to extend coverage or get a new policy.

Whole life insurance

Whole life insurance is a form of permanent life insurance that was created to provide lifetime coverage. Since it does cover the owner over their lifetime, the premium payments do tend to be higher than other options. One of the most significant benefits of this policy type is that it has cash value, which operates as a savings component and can accumulate tax-deferred over time.

Universal Life Insurance

Universal life insurance, like whole life insurance, is a type of permanent life insurance with lifetime coverage. These policies tend to be the most flexible and may allow the owner to raise or lower the premium payment throughout the lifetime of coverage. 

To find out more about life insurance, talk with one of our agents! Give us a call today at (920) 349-9700 and get a free quote.