There are several different types of life insurance products available. The most common of these are:
This coverage provides protection for a specified period of time. If you do not currently have life insurance, term can be a good place to start. It’s generally less expensive than permanent (whole) life insurance, and is available in varying time periods with fixed premiums from a one year (annual renewable term) to a 20-year (level term) period.
This is a form of permanent life insurance that remains in force your entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance can be an investment opportunity, as many whole life insurance policies also build cash value over time.
Universal life is a form of permanent life insurance characterized by its flexible premiums, face amounts and unbundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically, but is usually guaranteed not to fall below a certain percentage.
Advantages of Life Insurance
Life insurance can help you fulfill promises you’ve made your family when you are gone. Having the right life insurance is essential to planning for your present and future. Also, many life insurance options offer other benefits and investment opportunities you can take advantage of while you are living. Some of these benefits include:
- Life Insurance Death Benefit: When you pass away, your life insurance provides tax-free income to your named beneficiary or beneficiaries that can be used to pay for funeral expenses, debt, tuition, estate taxes, or virtually any financial need. Your policy can help provide security for your business as well, by enabling partners to buy out the interests of a deceased partner and prevent a forced liquidation.
- Living Benefits: The cash value growth of a permanent life insurance policy is tax-deferred, meaning you do not pay taxes on the growth of cash value, unless money is withdrawn. Loans or withdrawals can be taken against the cash value of a permanent life insurance policy to help with expenses, such as college tuition or the down payment on a home.
The right life insurance policy will be unique and dependent on personal and financial needs. As your life changes, your coverage may need to change in order to adapt to your current situation. Some life transformations may require a policy “tune-up.” Transformations include anything from marriage/divorce, planning for a child’s education, opened a business, and more. Give us a call to see if your current situation requires a tune-up.
Life insurance is different for everyone, and finding the right policy might be tricky. Let Synergy show you how to protect your family and your future with the right life insurance policy. Give us a call today to find the perfect policy for you, and trust Synergy to be your insurance professionals.