A life insurance policy guarantees that a specific amount of money will be paid to a designated beneficiary when an insured individual dies. If you have a spouse or children that depend on your ability to produce an income, you need life insurance. The adequate program and amount of coverage for you depends on several factors. We can do an analysis to determine the right option for you.
- Universal Life
Universal Life is a type of permanent life insurance based on a cash value. That is, the policy is established with the insurer where premium payments above the cost of insurance are credited to the cash value. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance charge, and any other policy charges and fees which are drawn from the cash value if no premium payment is made that month. The interest credited to the account is determined by the insurer; sometimes it is pegged to a financial index such as a bond or other interest rate index.
- Term Life
Term Life insurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time (10, 20, 30 years for example). After that period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments and/or conditions. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.
- Joint Life Insurance
Joint life insurance is either a term or permanent policy insuring two or more lives with the proceeds payable on the first (or second) death. This saves money as the premium would be higher if each were insured individually.
- Split Dollar Life
This agreement is where the death benefits, cash surrender values, and premium payments are split between an employer and employee, or between an individual and a non-natural person (i.e., trust).