Life Insurance

Why Life Insurance?

Life insurance has many different purposes. The first and most basic reason that comes to mind is to protect against the risk of an income earner passing away, by providing a death benefit to loved ones that will help them by alleviating the financial burdens of that lost income.

However, there are many additional purposes for life insurance, all of which are taken into consideration for each client to ensure your lifestyle is protected against the unexpected and to maximize your income.

Whole Life

Whole Life Insurance is used for multiple reasons and when provided by one of the great insurance companies we offer, it can be extremely valuable. Whole life insurance is in essence “buying” life insurance which means that after you have paid for a certain number of years, you will be covered for the rest of your life with no future payments required. This is great for those of you who wish to pass on a legacy to your children, spouse, or a charitable cause.

Whole Life is also sometimes referred to as the “Rich Man’s Roth” because it has a cash value which can be loaned against or withdrawn by the owner of the policy. This cash value is invested in the general account of the insurance company, and when purchased through a large, financially strong company, it is a very safe place to put your money to allow it to grow with very little risk.

Universal Life

Universal Life Insurance is a type of permanent life insurance that is generally guaranteed to ensure someone into very old age. This is a great solution for those of you who want to pass on a legacy or pass on assets in a very tax efficient manner. It is also used in conjunction with employer or government pensions, and when used properly can allow you to take a higher level of income from your pension for the rest of your life.

Term Life

Term Life Insurance is often referred to as “renting” life insurance. This type of insurance is often very purpose designed, and there are many different purposes for having it. Commonly it is used to protect a spouse or children from an income earner passing away at a young age, and it is very inexpensive. However, it can also protect the person who is insured. In recent years, insurance companies have begun offering “Living Benefits” as a part of their Life Insurance and Term Life Insurance can offer these other forms of protection in an extremely inexpensive manner.

Some living benefits can protect an individual from costs associated with an acute illness, a chronic illness, replace income if disabled, create a pension if disabled before the person was able to save enough, offset Long Term Care costs and offset costs in the event someone is diagnosed as terminally ill. These benefits come in addition to a death benefit with many new Life Insurance policies.

Final Expense

This is a type of Life Insurance that is often used when an individual has already been diagnosed with a serious life-threatening condition. At this point, many people will not qualify for the types of Life Insurance already mentioned. However, someone who may not have a long life expectancy can often still qualify for this type of insurance and it is affordable.