LIFE INSURANCE

– BUILDING A LEGACY FOR YOUR FAMILY –

We have partnerships with many of the nations top rated carriers. This enables us to get the best life insurance quotes for you! We understand that every individual and family has unique circumstances. Whether you are looking for a more affordable policy that covers your short or shorter term needs, or the protection of life-long cover with flexible options, our expert advisors can assist.

The need for life insurance.

Most Americans are not independently wealthy enough to support their family members after they die – they simply do not have the financial resources to do this. Outstanding mortgages, college debt, loans, even funeral costs, can place a heavy burden on your family and loved one’s after the death of a bread-winner and provider. There are so many things to consider.

The starting point in planning life insurance needs must be a detailed assessment of financial requirements for your family and dependents. Write it all down and make a comprehensive list. Discuss this with the key stake holders.

After you have a solid understanding of your needs, then look at the different life insurance options available to you. At this point you will have a solid platform to work from and have your agent shop around for the best plan. Also, together with your agent, you will be then be able to make an informed and considered decision that maximizes benefits with affordability.

Consider the following:

  • Define your stage of life. For example, do you have young children? How many years until they reach college? College plus mortgage plus other debt? This will help you distinguish what type of life insurance you need – term life or whole life. Typically, it makes sense for younger families to purchase term life which is much more affordable and can provide greater death benefits, and then switch to whole life in later years.
  • Circumstances can change at any time. As we go through the stages of our lives (marriage, children, buying a house etc.) our security needs change. Build this in to your financial planning needs. As far as possible, try and avoid being underinsured.
  • Determine how much coverage you need. The best way to do this is to calculate your family’s monthly expenses after your death and be sure to include tuition and mortgage expenses. Be very thorough with your list! Then determine if the lump sum death benefit will earn enough to take care of these expenses together with one-off expenses (for example, funeral costs).
Definitions
Term Life
Has a set duration limit on the coverage; 5, 10, 15 to 30 years of life cover. Once the policy has expired, the owner must decide to either renew or let the coverage end.
Whole Life
Is a policy with level premiums that has an insurance and investment component. The insurance component pays a stated amount upon the death of the insured.
Universal Life
A flexible type of permanent life insurance offering the low-cost protection of term life insurance as well as a savings element which is invested to provide a cash value buildup.
Advantages
Term Life
Offers the most affordable and simple coverage for a period of time.
Whole Life
Provides life time coverage with access to the built up cash value.
Universal Life
Is flexible in terms of premiums and coverage offered.
Usage
Term Life
Provides protection for child raising years against loss of income, debt, mortgage and education.
Whole Life
Prepares for the unexpected like a term life policy but does build a cash value over the years – you are also covered for life and does not have a term limit.
Universal Life
Offers the most flexibility if you would need to draw against built up value of the policy while still providing you with life coverage. Also used for estate, special needs and business planning.
Guaranteed Death Benefit
Term Life
Yes – provided that the premiums are paid as required.
Whole Life
Yes – guaranteed for the life of the policy provided that the premiums are paid.
Universal Life
Death benefits are adjustable according to policy.
Lifetime Coverage
Term Life
No – only covered for the policy term specified.
Whole Life
Yes – guaranteed for the insured’s lifetime, provided premiums are paid as required.
Universal Life
Yes – it is possible coverage will expire when either no premiums are paid following the initial minimum premium or subsequent premiums are insufficient to continue coverage.
Cash Value
Term Life
Available only if Return of Premium rider is included.
Whole Life
Yes – the cash value growth is tax deferred.
Universal Life
Yes – the cash value growth is tax deferred.
Lifetime Level Premiums
Term Life
Premium remains the same for the duration of the policy.
Whole Life
Yes – the premium is guaranteed for the life of the policy.
Universal Life
Premiums are flexible and adjustable.

Final Expense Life Insurance

Don’t leave the burden to your loved ones

No one wants to leave a financial burden for their loved ones. The fact of the matter is that most families have a hard time coming up with the funds to cover final expenses – the median cost of an adult funeral and burial in 2014 (source: nfda.org) was $8,508. Unfortunately it doesn’t end there. There are always additional costs over and above the funeral and burial. Bills still have to be paid. In many instances, families have to withdraw precious savings and sell off assets to cover final expenses. Social Security only pays $255 for those who qualify to cover final expenses. Losing a loved one is an extremely emotional and difficult experience. It is stressful and all to often, sudden. With a final expense life insurance policy you can eliminate the inevitable burden that your family will have to face.

What Is Final Expense Life Insurance?

A final expense insurance policy is a whole life insurance policy (see above). Unlike a Term Life policy, whole life insurance provides coverage for life;

  • Your loved ones are guaranteed to receive a death benefit as long as the premiums are paid.
  • Over time, the policy will build a growing cash value.
  • Your premium will remain the same throughout your lifetime.
  • Premiums are determined by age and health. The younger you are, the lower the premium.