Did you know that on May 2, in the late 1760s, life insurance first started being sold in the United States?
We turn the spotlight on the benefits of life insurance and why everyone should have a policy set in place.
What is life insurance?
Life insurance protects what matters most – Your family.
A life insurance policy protects your loved ones against the financial burden caused by your premature death.
What are the different types of life insurance?
- Term Life Insurance
Term Life is temporary life insurance. If you want the best possible coverage you can buy, term life insurance might be for you.
The biggest advantage is that it has very low premiums in comparison to a permanent life insurance policy. You can purchase term life insurance for a term as short as one year or for as long as 30 years.
Term life insurance is very simple: If you die during the term of the policy, the benefit is paid. If you don’t die during the term, you may be able to continue the policy, but the rates will increase substantially. Rates change all the time, so you may be eligible for better terms than you currently have.
- Return of Premium
Return of Premium is the best of long-term protection and low premiums. Many people struggle to choose a life insurance policy. If you buy a term life policy, you may get a great rate, but your policy will eventually expire. Whole life offers permanent protection, but it can be very expensive.
Return of Premium Term Life Insurance is an innovative product that combines the best of both worlds. Like a typical term plan, if you died during the policy term, your beneficiary would receive the full death benefit. However, if you kept your policy and did not die during the term, you would receive a refund of the entire amount of premiums you had paid for the policy. It’s protection if you need it, and money back if you don’t.
- Whole Life Insurance
Whole Life is perfect if you want a policy that will cover your family no matter what.
Whole life insurance is a life policy that is designed to cover you for your entire lifetime. The rates for whole life insurance are often significantly higher than for term life insurance, but it can be a great value for a person who wants to make sure that, no matter what, the policy will never expire, and the premium will never increase.
Whole life can also be used as an investment. Since the policy is for a lifetime, it will often build a cash value. This cash value can be used on a tax deferred basis for purposes, such as, a down payment on a dream home, college tuition for the children, or income for you during retirement.
- Universal Life Insurance
If you need a life insurance policy with a lot of flexibility and with a guaranteed rate of return on your investment, a universal life plan may be perfect for you.
Universal life is really a form of whole life, except that it has even more flexibility. Universal life allows you to pay premiums at any time, in virtually any amount, and you can lower or raise the death benefit fairly easily. Typically, a universal life policy will have a guaranteed rate of return on your cash value. These guarantees will rest solely on the claims paying ability of the insurance company, so it is critical to select a universal life policy carefully.
Things to consider about life insurance
Life insurance rates are based on your age, health, occupational work, medical history and gender. That’s why it’s important to buy a life insurance policy when you are young because you will get the best rates.
A group of people, known as underwriters, determine the appropriate level of premium based on how much of a “risk” you are at the time of application. They play the most important role in the life insurance application process (besides the actual applicant) because they have the power to accept or deny someone for a life insurance policy.
How we can help you
We offer competitive rates on every type of life insurance and can help you protect your loved ones no matter what.
Life is very uncertain, but your life shouldn’t be.
Give us a call at (864) 467-8738, and we can answer any questions that you may have, and we can do a free life insurance application for you.