Life Insurance Products
Understanding Life Insurance Products
Perhaps before you receive your free life insurance quote
from us, you want to better understand what it is you're receiving. Life insurance is a product which pays
a death benefit to a designated beneficiary upon the death of the person
insured. There are two basics types of life insurance policies: term or
permanent.
Term Life Insurance provides
coverage for a specific length of time or “term”. The insured selects how long
he/she would like to be covered when purchasing term life policies. When you receive a term life insurance quote from anyone,
you should of course note how long the term is.
Return of Premium -
Term life insurance for a specified period of time. The owner of the policy
receives a guaranteed return of premium paid if the policy is kept for the
term period. For example, 20 year return of premium would guarantee a return of
premium after you paid 20 years of premium.
Permanent Insurance refers
to policies that cover the insured for the entire duration of his/her life.
There are multiple permanent insurance products available and when you receive a free life insurance quote, be sure you compare these terms:
Whole Life Insurance provides
a guaranteed level death benefit until death or age 100 whichever comes first,
and builds a guaranteed cash value which will equal the face amount of the
policy at age 100.
Universal Life Insurance
provides permanent protection with flexible death benefit, premium amount,
payment period, cash value growth, and protection periods.
Variable Universal Life Insurance provides
the opportunity for customers to have life insurance protection and
participation in debt and equity markets under one umbrella.
Survivorship Life Insurance
provides coverage for two or more persons with death benefits paid upon the
death of the last insured.
Simplified Issue Life Insurance provides
basic life insurance coverage that generally requires no blood or urine
samples, medical exams, or medical records in order to be insured.
There are three major terms to
consider when reviewing life insurance policies and receiving a free life insurance quote: options, provisions, and
riders. Options refer to particular choices that the individual purchasing the
policy must decide including whether the policy is paid out monthly or in a
lump sum. Provisions explain the different features of the policy that can be
purchased such as, benefits, conditions, and requirements of the contract.
Riders are modifications to the original policy that can either add or subtract
benefits and are specific to each policy owner’s needs. Especially when you receive an online life insurance quote, be sure you compare and understand these terms.
Understanding Why To Buy Life Insurance  Top
of Page
There are multiple reasons to purchase life insurance
policies. The primary purpose for purchasing life insurance is to provide
financial stability to beneficiaries in the event of the insured’s death.
Beneficiaries are faced with a myriad of financial responsibilities after the death
of the insured. Not only is the loss of an income devastating to a family, but
any previous debts of the deceased such as credit cards, automobiles, even
mortgages have to be paid in addition to funeral costs. Life insurance can help
to balance the financial burden of the beneficiary by providing a consistent
income or a lump sum of money.
Life insurance can also be purchased
as a savings tool. Certain life insurance premiums actually include cash
savings. More simply, if a “permanent” life insurance policy was purchased for a premium
of $1,000 per year, a portion of that money would pay for the life insurance while the
other portion would be invested. The invested portion (cash value) is
tax-deferred enabling larger financial growth for the individual. These types
of policies can be used as collateral when taking out a loan or even advanced
savings for a child’s education. When you receive free insurance quotes, be sure you understand the benefits of the policy and verify that it meets your needs and wants.
A beneficiary is defined as the person
whom receives the pay out of a life insurance policy in the event of the
insured’s death and are often times referred to as revocable or irrevocable.
Revocable beneficiaries can be terminated from the policy at any time while
irrevocable beneficiaries must give their authorization to be removed from the
policy.
There are three different types of
beneficiaries that need to be named on each life policy: primary, secondary,
and final. Primary beneficiaries are the first person to receive the benefits
in the event of the insured’s death, while the secondary beneficiary would
receive the death benefits in the event of both the insured and primary
beneficiary’s death. The final beneficiary refers to the person, group, or
charity, which would receive the death benefit if the insured, primary, and
secondary beneficiaries had died.
Most financial analysts suggest
consulting a tax professional when choosing beneficiaries.
Numerous life insurance policies and products are
readily available and we can provide free insurance quotes for all our policies.
Many people express the same questions. Review the FAQ's about life insurance to help in
selecting a policy that best suits your needs. When you're ready, request a free life insurance
quote from us by clicking the button below.
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