TERM PRODUCTS
Term Life Insurance: The simplest form of Life coverage, term insurance is no more than a matter of premiums and a death benefit. The name fits since term insurance’s span of coverage lasts only a specified period of time; if the insured dies while the policy is in force, the death benefit will be paid to the designated beneficiary.
WHOLE LIFE PRODUCTS
Whole Life Insurance: Permanent form of Life coverage that is provided for the insured’s lifetime. Whole Life policies build cash value that the policy owner may borrow during the insured’s lifetime, at a reasonable rate of interest. If there is an outstanding loan at the time of the insured’s death, the death benefit is reduced by the loan amount.
UNIVERSAL LIFE PRODUCTS
Universal Life Insurance: Permanent form of Life coverage that offers a great deal of flexibility to the policy owner. Premium payments may be varied, death benefits may be changed, partial surrenders are allowed, and cash value may be accessed either through loans or direct withdrawals.
Frequently Asked Questions About Life Insurance
What happens to all of my assets if I die?
Life insurance death benefits are distributed to the named beneficiaries of the policy. However, for distribution of your assets, it’s important to create a living will in order to tell the probate court judge who should receive your belongings, or a trust to avoid probate. This also helps to speed-up the process; without a living will, probate could take an extended amount of time, and be significantly more expensive. Let Insurance Agent Jeff Lecoeuche help you plan for your future.
How much insurance do I need?
There are a few ways to calculate what you need. You can elect to pay existing debts and expenses (i.e. mortgage, credit card, cars) plus plan for future expenses (i.e. college cost, retirement planning) and add people you live that might need help (i.e. family, handicapped sibling…)
You can also chose to replace your spouse’s life income. To calculate that, we look at the amount that needs to be invested so the interest earned replaces the income. If this sounds confusing, don’t worry. You’re not alone. That’s why most people turn to a qualified insurance professional when they want to figure out how much insurance they need.
What type of policy should I buy? Term or permanent?
The truth is that if you die, the only good policy is the one you have in place, term or permanent.
Term insurance is cheaper but will expire. It is very convenient for young families on a small budget, or temporary need (i.e. college for kids until they graduate).
Permanent life insurance is the policy you will keep until you die. It is valuable because few people have too much money during retirement, and permanent life insurance will allow you to leave money to your spouse. Permanent life insurance also allows you to accumulate cash that will be accessible in future years for any financial need (i.e. retirement, college, downpayment for a home or business)
Should I buy a life policy for my children?
Juvenile life insurance allows you to buy insurance fir your kids. The purpose is to guaranty that the child will have life insurance in the future no matter what his health becomes. This type of policy is permanent so your child could potentially have it for his or her life time.
Sadly, children die too and the juvenile life policy will provide the necessary funds to the parents to have a proper funeral and cover any other related expenses.
How do I find a knowledgeable agent?
Look for professional designation that shows a specialty in life insurance like LUTCF. Do some research on line, ask questions to your agent.