LIFE INSURANCE
Get protection for your family with reliable life insurance.
We (almost) always remember to safeguard the valuable stuff like our health, our cars, our homes, our cell phones, and even our pets. However, what about securing financial protection for your loved ones after you are gone? It is not a topic most of us care to dwell on, but it is an important one.
Why buy life insurance?
Topping the list of reasons to buy life insurance is the financial protection life insurance offers. If you're single and just starting out, you may not need as much life insurance. But as you take on more responsibilities and your family grows, your need for life insurance increases. The proceeds from a life insurance policy can replace the income lost to your family upon your death. You might also want to buy life insurance to pay off debts and expenses, leave money to charity, and cover final and estate expenses.
Types of life insurance
Term Life
What is term life insurance?
Think of it as a way to provide for your loved ones if you're no longer around. It provides affordable protection for a specific period of time. Term life insurance can help ensure your family has the money it needs to take care of important financial responsibilities like:
Paying off debts, including your home mortgage
Providing extra protection to help raise your children
Paying for your children's education
In your term life insurance quote, you’ll choose a timeframe and limit based on your needs in those areas. Most policies require a medical exam, and your coverage takes effect in four to six weeks.
Term life insurance is the most common type of policy, and is a great option for young families who prefer to pay less for coverage. These policies, while still being affordable and flexible, are designed to help ensure that your loved ones will be financially protected should unexpected death occur.
You can choose your policy term (typically 1 to 30 years) to match your needs. And for healthy, non-smoking adults, rates are very affordable. Payments are fixed and will not increase over the life of the policy term, and you can customize your policy by adding extra coverage.
On the other hand, term life insurance only insures you for the stated policy term. That means if you pass away a year after your term expires, no payments will be made. Your policy also doesn't accrue any cash value, unlike other types of coverage.
Some policies, however, will let you convert your term life policy into a universal or whole life policy. These types of policies usually have longer terms and more perks, but generally come with higher premiums. Check to see what your options are when you get a quote.
Whole Life/Permanent Insurance
Permanent life insurance comes in a couple of forms.
Whole life insurance is ideal if you're over 50. It provides guaranteed level premiums, a death benefit and a savings component (called cash value insurance) that builds with time.
Universal life insurance is a more flexible permanent option. It still provides a death benefit and a savings component. You can also change premium payments as your budget changes, and reduce or increase the death benefit more easily.
Plus, with certain riders you can:
Use a portion of coverage for yourself if you develop a critical condition such as heart attack, stroke or cancer (critical illness rider).
Accelerate a portion of the death benefit if you’re diagnosed with a chronic illness that will require long term care (chronic illness rider).
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PLEASE NOTE
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions expressly stated in any contracts of insurance. We encourage to read your policy contract to fully understand your coverages.