Understanding Life Insurance and Your Options
Life insurance is a fundamental component of a sound financial plan. It is a legally binding contract between you and an insurance company. In exchange for your regular premium payments, the insurer promises to pay a lump sum, known as a death benefit, to your designated beneficiaries if you pass away while the policy is active.
The primary purpose of life insurance is to provide financial security for your loved ones, helping them replace lost income, cover daily living expenses, pay off debts (like a mortgage or car loans), fund a child's education, or cover final expenses.
Term Life
Duration of Coverage : Covers you for a specific period of time (e.g., 10, 20, or 30 years).
Cost (Initial Premium) : Generally more affordable at the initial purchase.
Cash Value : Does not accumulate any cash value or savings component.
Flexibility : Simple, straightforward, and no ability to borrow funds.
Purpose : Best for temporary needs like covering a mortgage or providing for dependents until they are financially independent.
Permanent Life
Duration of Coverage : Covers you for your entire life, as long as premiums are paid.
Cost (Initial Premium) : Generally more expensive than Term life.
Cash Value : Includes a cash value component that grows tax-deferred over time.
Flexibility : The cash value can be accessed through loans or withdrawals during your lifetime.
Purpose : Best for lifelong needs like estate planning, final expenses, and long-term tax-advantaged savings goals.
Term vs. Permanent Life Insurance: The Key Differences
The two main categories of life insurance policies—Term and Permanent—are distinguished by their duration and their financial structure.
While life insurance is primarily known for the death benefit, many modern policies come equipped with "Living Benefits." These are features, often added as riders, that allow the policyholder to access a portion of their policy's death benefit while they are still alive, if they experience a qualifying serious illness or condition.
Common Living Benefits (or Accelerated Death Benefit Riders) include:
Terminal Illness: Allows you to access a portion of the death benefit if you are diagnosed with an illness expected to result in death within a specified time frame (e.g., 12 or 24 months).
Chronic Illness: Provides access to funds if you are diagnosed with a chronic illness and are unable to perform a certain number of the Activities of Daily Living (ADLs) or have severe cognitive impairment, often used to help cover costs associated with long-term care.
Critical Illness: Provides a lump sum if you suffer from a covered critical medical event like a heart attack, stroke, or invasive cancer.
Our Commitment to You
We partner with a wide array of TOP US providers to ensure we can offer the most suitable life insurance products to meet your unique needs and financial goals.
Our network of carriers includes respected industry leaders such as:
AMERICAN AMICABLE
AMERICAN EQUITY
AMERITAS
ATHENE ANNUITIES
Annexus
COREBRIDGE
ETHOS
FIDELITY & GUARANTEE LIFE
LINCOLN FINANCIAL LIFE
MUTUAL OF OMAHA
NATIONWIDE LIFE
NORTH AMERICAN LIFE
Would you like to explore which type of policy—Term or Permanent—might be the best fit for your current financial situation, or receive a quote based on your specific needs?