There are many different types of life insurance available
to you.
We’ve provided a brief description; please call with your
questions.
Buy / Sell Insurance
A lot like Key Person, except these benefits are used
to buy out the shares of a deceased business partner.
Proceeds are generally used to buy the partners shares of
stock from the heirs of the deceased.
Convertible Term
Option
One of the many optional riders
available. The option allows the policy owner to convert
their tem policy for a permanent policy without evidence of
insurability.
Key person life insurance
More of a reason to buy rather than a product. This policy
protects a business which would suffer a loss in the event
of a death of a key employee. The insurance is purchased by
the business to reimburse for the loss of that person.
Proceeds may be used to hire and train a replacement.
Level Term
Term insurance premiums typically start out low and increase
as the insured person gets older. With level term, the
premiums remain constant through the life of the policy.
These policies can have terms of 10. 20, or even 30 years.
The policyholder will typically pay a little more in the
early years of the term, but will pay less as the policy
ages.
Life Insurance
A policy, or contract, between the insurance company and the
owner, guaranteeing a payment of a set amount of money if
the insured dies. The insured is not always the owner. A
parent can insure a child, and a business can insure an
employee.
Permanent Life Insurance
This is any form but term and
will include a cash value feature. Universal life and whole
life are examples of permanent life insurance. Unlike term
insurance, once a permanent life policy is written, the
premium does not increase as you become older.
Term life Insurance
Term insurance is bought for a specified period of time. It
is usually bought in order to provide protection for a
specific need or liability, I.E. car of home loans. Older
tem policies would renew each year at a higher rate. Newer
tem products have "locked in" features. Term insurance has
no cash value feature.
Always consider the
following key points when buying life insurance:
-
Life insurance is not for you,
but for those who you leave behind.
-
Life rates are based on may
factors: age and health status being the most important.
-
Most carries will not offer
coverage until a medical examination (at your cost) is
completed.
-
The best time to buy is when the
insured is young.
-
As we age, premiums increase -
if illness or disease occurs, affordable life insurance
may be unobtainable.
|
