Losing a loved one is hard enough. Leaving your loved ones behind in a bad financial situation is devastating.
Life insurance gives you peace of mind when you stop to consider…how your family will carry on if something happens to you? There are various ways to protect your loved ones if you die.
Term Life Insurance
Term life insurance is pure insurance with no cash value account. You determine for what length of time (“term”) you want coverage; a typical term is 10 to 30 years.
A term life policy does one thing: It pays a specific lump sum to whomever the insured designates if the insured dies during the term of the policy.
The death benefit and the policy limit are always the same. For example, a $200,000 policy pays a $200,000 death benefit. The benefit can be used to help your survivors adjust to the financial impact of losing an income stream, cover burial expenses, pay off debt, etc.
Whole Life Insurance
Like term insurance, whole life insurance pays a death benefit, but it also offers a cash value account and tax-deferred cash accumulation.
You have the option to receive dividends from your policy or you can apply them to reduce your premium payments.
With certain products, you can also withdraw money from the policy during your lifetime if the insured continues paying premiums, the policy remains in force until the death of the insured.
Universal Life Insurance
Universal life insurance is similar to whole life except for one thing – it is very flexible and can be changed as your needs or your family’s needs evolve.
Like whole life, it pays a death benefit and offers you low risk cash value account and tax deferred accumulation.
It also allows you to withdraw money from it, if you need it. You can also change the death benefit and premium payment without surrendering the policy or getting a new one, as a whole life policy would require.
To determine which life insurance is right for your needs, call Ostrowski Insurance Agency for a free quote!