Term life insurance, whole life insurance, universal life insurance, variable life insurance, survivorship insurance… the list and combinations seem endless. Do you know which life insurance policy type is right for you? Here at Longevity Planning we can help with these difficult decisions. Our team of dedicated professionals can find the right plan or combination of plans for your specific needs.
Term Life Insurance Basics: You buy a low-cost term life insurance policy with a specified time period; usually ten, twenty or thirty years. During that “term” you pay a specified premium. Your beneficiaries will receive a death benefit if you die during the term of the life insurance policy.
- Coverage for a “term” or period of your life
- Lower premiums for higher coverage
- Rates can change after specific terms expire
- No equity – cannot be used as cash value
Whole Life Insurance Basics: A whole life insurance policy covers you for your entire life. Your death benefit and premium in most cases will remain the same. Whole life insurance also builds cash value, which is a return on a portion of your premiums that the insurance company invests. Your cash value is tax-deferred until you withdraw it and you can borrow against it.
- Permanent, not for a specific period
- Protection carries with you your whole life
- Can build equity and have cash value
- Higher premiums than term life, but can be more valuable and cost effective in the long run
Determining the right amount of insurance can also present a challenge. We have the tools and resources to help you make sure you have the right amount of coverage in place. By sitting down together, we will work as a team to review your family’s life insurance needs. When drafting a life insurance plan, you may want to consider covering outstanding debt, income replacement as well as future educational endeavors. Sometimes blending a combination of policies is most appropriate. Your need for life insurance may be highest when your children are young. By combining a lower cost term policy with a smaller whole life policy, you will have the protection you need at a price you can afford. The whole life policy will always be there for you and can also be used as a pension maximization tool. You will leave our office knowing that you put the right type of policy in place and that your family is protected.