Life Insurance provides peace of mind that your family’s financial future is secure and can help your family:
- Maintain their current standard of living
- Pay the home mortgage
- Pay off debts, estate taxes, and final expenses
- Pay burial expenses
- Fund a child’s education
There are several types of life insurance options available to meet your needs. The two main categories of life insurance are term insurance and permanent insurance (aka “universal life” or “whole life”).
Term life insurance: Term is probably the simplest and least expensive type of policy. The term policy has one function, to pay a specific lump sum (face amount) to your beneficiary.. The policy protects your family by providing funds they can use to replace your income as well as cover final expenses. Life insurance is issued for a specified term of years, normally building up no cash value and expiring without value. Typical term periods are 10, 15, 20, 25 and 30 years..
Universal life insurance: Universal life provides both a death benefit as well as a cash value account. These premiums are higher than term policies because in addition to buying the insurance protection they fund the savings account portion. These policies offer more flexibility and can give you access to some of the premiums that you have been paying for in a tax favorable manner. Unlike term policies the universal life or whole life contracts remain in force for the insured’s whole life (usually to age 100).
Whole life insurance: A plan of insurance offering protection for the whole of life, proceeds being payable at death. Premiums may be paid under a continuous premium arrangement or on a limited payment basis for virtually any desired period of years. Premiums are typically level and guaranteed for the life of the policy.
Remember the decision to buy a permanent or term life insurance policy will depend on your situation, your age, your financial well-being, and other factors. If you are a young family with some investments to protect but not financially stable a term product may be best for your situation to protect your investments and your family. However, if you are financially stable with considerable investments, it may be a better decision to purchase a permanent plan.
Representing over 200 of the nation’s top rated carriers the James F. Hurley Insurance Agency has you covered whether you are looking for term, permanent life insurance or would like to review your existing coverage.