Risk management occupies an important foundational space in your comprehensive financial plan. It involves identifying and safeguarding against threats such as loss of health, property, income, savings or life. We offer a wealth of high-quality insurance and annuity products to protect you.
Why is life insurance important?
Life insurance provides your family protection from financial loss when you die. Ideally, it should allow your family to maintain a standard of living similar to what it enjoys today. Proceeds can be used to:
- Replace lost income.
- Transfer wealth.
- Eliminate debt.
- Fund a college savings plan.
Who should own life insurance?
A good rule of thumb is as your family increases in number, so does your need for life insurance. A single person with no dependents and few close relations could get by with little or no life insurance. However, as your family grows, you’ll want to consider adding life insurance to your comprehensive financial plan.
How does life insurance work?
Life insurance is a contract between an insurance company and you, the policy owner. When you die, the policy pays a death benefit, typically on a tax-free basis, directly to your beneficiaries.
What kinds of life insurance are available?
Term Insurance provides protection for a specific period of time and pays a benefit only if you die during the term. There are two types of term insurance:
- Level term — A policy whose face value and premium are guaranteed to stay the same for a given period of time.
- Annual renewable term — A policy that can be renewed each year without completing an application or passing a physical exam. The face value remains the same but premiums increase each year. This kind of insurance is generally purchased by younger individuals because of its affordability.
Permanent insurance is an umbrella term for policies that do not expire and combine a death benefit with a savings portion. You hold and fund a permanent policy throughout the course of your life. There are three types of permanent life insurance:
- Whole life — A policy with a guaranteed payout to beneficiaries and a savings portion that can be borrowed against or withdrawn to meet financial needs.
- Universal life — Universal life insurance provides more flexibility than whole life insurance. The death benefit, savings portion and premiums can be reviewed and changed as your circumstances change. And, interest from the savings portion can be used to pay premiums.
- Variable life — Variable life insurance guarantees a payout to beneficiaries and allows you to invest a portion of your premium in insurance company securities and mutual funds.
With the proper life insurance, you can rest assured that your family will be protected. Please, contact us for more information.