“Life Insurance is an important tool that helps create financial security for your family or business due to an untimely passing.” Planning is essential to ensure proper coverage for your needs. I will obtain quotes from leading insurance carriers suitable to your situation and budget.
Commonly used for:
- Paying off debts (mortgage, credit cards, personal or business loans)
- Providing liquidity to pay estate taxes instead of liquidating at an undesirable time
- Pay final expenses
- Provide income for your family, ensuring they maintain a desired lifestyle
- Provide funding for college tuition
- Businesses (cover outstanding liabilities, group life insurance, Buy-sell agreements, Executive Bonus Plans, Key Person, and Deferred Compensation etc.)
Term Insurance
- Typically no cash value or equity; you are “renting or leasing coverage”
- Cheapest and most basic insurance
- Coverage for only a certain amount of time (Typically between 10 – 30 years)
- Riders available to enhance term coverage
- Most group life insurance is term insurance providing coverage only while employed
Permanent Insurance (Often referred to as Whole Life)
- Typically has cash value or equity; you are “purchasing coverage”
- More expensive then term insurance
- Coverage designed to last your entire lifetime
- Ability to use cash value to supplement retirement funds
- Companies use for Executive Bonus Plans, Key Person, Deferred Compensation, etc.
Types of Permanent Insurance
- Universal – Cash value determined by interest rates
- Variable – Cash value determined by selection of investments
- Index – Cash value determined by combination of fixed interest rates and tracking of a stock market index
- Whole Life – Cash value determined by the issuing insurance companies dividends.
