Life Insurance

Types of life insurance policies

Term insurance- term insurance typically provides a fixed amount of death benefit for a premium that is guaranteed for a specific amount of time, typically 10, 20, or 30 years. At the end of that guaranteed period the rates begin to increase, often dramatically. Term policies do not have cash values.

Whole life- whole life insurance provides a guaranteed death benefit with a guaranteed level premium for the whole life of the insured. These policies do have a component that builds cash values during the life of the contract. These cash values can be accessed by the insured during his or her lifetime.

Univeral life- universal life insurance is somewhat of a blend between term insurance and whole life insurance in that the cost of the insurance is smaller in the early years of the contract, increasing as the insured ages, while, like whole life, having a cash accumulation value that increases over time. These policies are flexible allowing insured’s to raise or lower the death benefit and/or premiums. These policies can provide the flexibility necessary to adjust the policy to accommodate insured’s changing needs.

As experience independent brokers we review life insurance products from a large number of top rated, financially secure life insurance companies. In addition to product costs it is important to be aware of “the fine print” on the various life insurance contracts. Some term products have longer conversion periods than others. Some term products costs “explode” at the end of the guaranteed rate period; others do not. Some universal or whole life products are loaded with hidden costs and fees that can be a drag on cash accumulation. Some carriers favor a certain market such as younger or older ages, females or males and some have more liberal underwriting guidelines for certain medical issues. As an example, one carrier will offer non-smoker rates to applicants who are cigar smokers while most others will charge a smoker rate. The differences in costs can be quite significant.

Product offerings can be somewhat overwhelming today with variations on types of term or permanent insurance. Some cash value policies are tied to market indices, some to fixed or variable interest rates and some allow insureds to invest in mutual funds. Policies can be designed to be guaranteed for a specific number of years. They can be designed with a specific amount of cash accumulation in mind. And they can be designed to become paid up within a specific number of years. By discussing your needs and desires for what you want and expect out of your life insurance policy we can help you find the product that best suits you.

Because we present life insurance plans without regard to commissions you will find that we can be extremely competitive. In most cases our clients are pleasantly surprised by our low cost alternatives.