As your personal situations change (i.e., marriage, birth of a child or job promotion), so will your life insurance needs. Care should be taken to ensure a product is suitable for your long-term life insurance needs. You should weigh any associated costs before making a purchase. Life insurance has fees and charges associated with it that include costs of insurance that vary with such characteristics of the insured as gender, health and age, and has additional charges for riders that customize a policy to fit your individual needs.
There are two major kinds of life insurance – Term and Permanent. We will help you decide which policies are best for you without a high pressure sales pitch.
Term Insurance – Term Insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually for 10, 20, or 30 years. These policies typically don’t build cash value inside of them.
Permanent Insurance – The two main types of Permanent Insurance are Whole Life and Universal Life. These policies are typically designed to stay in force for the rest of your life as sufficient premiums are paid, and "may" build cash value inside of them. Whole life has fixed guaranteed rates and develops guaranteed cash values. Universal life typically has more flexibility than Whole or Term. Within certain limits, you can change the death benefit, the amount of premium, and payment frequency. Unlike whole life, this is an “interest driven” policy, which normally pays a minimum guaranteed interest. If the interest rates are continuously low, additional premiums may have to be paid to avoid a lapse of coverage.
Riders – There are many riders that may be available to add onto your life policy. Below are a few examples:
Disability waiver of premium – A feature added to some life insurance policies providing for the waiver of premium, and possible payment of monthly income if the policyholder becomes totally and permanently disabled.
Accidental Death – A provision in a life insurance policy for payment of an additional benefit if death is caused by an accident. This is sometimes called double indemnity.
Long Term Care – Guarantees and protections are subject to the claims paying ability of the issuing insurance company.
Because of old age, mental or physical illness, or injury, some people find themselves in need of help with eating, bathing, dressing, and other physical activities. This policy responds to these needs and can help preserve your estate and sometimes may even be added as a rider on a life insurance policy.
Annuities – annuities are available with either fixed or variable funding options. Tax deferral, death benefits and life time income guarantees can make them very attractive.
Health and Dental Insurance – The rising cost of medical and dental care makes this coverage a top priority if you want to have your potentially large expenses covered at a reasonable cost.
Medicare Supplements - Medigap is health insurance to fill the “gaps” in Medicare coverage. Medigap policies also help pay some of the costs that Medicare doesn’t cover.
Disability Insurance - Disability insurance pays an insured person an income when that person is unable to work because of an accident or illness.