TYPES OF INSURANCE
No Pressure informal meeting to discuss what your trying to accomplish with a Life Insurance Policy and the type of Insurance that will best fit your need,
Term Life
A term life policy is exactly what the name implies: Coverage for a specific term or length of time, typically between 10 and 30 years. Unlike whole life insurance, Term Life has no cash value. It’s designed solely to give your beneficiaries a payout if you die during the term. Most individual term policies have level premiums, so you pay the same amount every month. When the term expires, there’s no more coverage – you either have to go without or get a new policy, which will likely come at a higher cost: The older you are, the more expensive it is to get a policy. However, many Insurance providers will allow you to convert a term policy to permanent life insurance for part or all of the coverage period.
Whole Life
A whole life policy is the simplest form of permanent life insurance, providing coverage that lasts your entire life. Permanent policies have a cash value component: A portion of your premium dollars are placed into a cash value account, and this sum grows over time on a tax-deferred basis, so you don’t pay taxes on the gains. Compared to other forms of permanent coverage, a whole life policy has three defining characteristics:
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The level premium remains the same for life
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The death benefit is guaranteed as long as the guaranteed premiums are paid.
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The policy includes guaranteed cash values that grow at a guaranteed rate
Cash value provides several significant benefits you can use while you’re still alive. It takes a few years to grow into a useful amount, but once it accrues, you can borrow money against it, use it to help pay your premiums, or even surrender it for the cash value. Some Life Insurance companies offering Whole Life are called Mutual Compnaies. Whole Life policies from a mutual company, can earn an annual dividends. This allows for a portion of the insurer’s profits, to be used to increase the value of your policy and provide other benefits. These are not however guaranteed,
Universal
A universal life policy is another form of permanent insurance that offers the cash value and lifetime coverage benefits of whole life. But there’s a fundamental difference compared to whole life : the premiums are flexible. With a universal policy, you can raise or lower the amount you pay into the policy as you see fit, within the limits of the policy. Paying in less could eventually result in the need to pay in higher amounts in later years to keep your coverage. This policy can adjust to your life circumstances while providing cash value growth. Provident Plus takes pride in it's many relationships with Insurance providers that offer multiple types of Universal Life to fit your ever changing needs. Guaranteed Universal and Indexed Universal to name a few.
Final Expense
This is a form of life insurance intended only to cover end-of-life expenses such as funeral and burial costs. The coverage is permanent in the sense that if you keep paying premiums, the policy will remain in effect. Final Expense is a type of whole life insurance policy that offers a lower death benefit. Its aim is to provide enough for your loved ones to pay expenses related to end-of-life arrangements or For Ex: outstanding medical bills. However, the beneficiary may use the death benefit for any purpose. As a whole life policy, it may build cash value and pay dividends. This is another area Provident Plus specializes so speak to us about clarification on the policies you are interested in. Final expense life insurance policies may come with lower premiums because of the lower death benefit amount. In many cases, policyholders won’t have to undergo a medical exam. Some final expense policies will come with a graded death benefit.
While the premiums for these tend to be modest, the death benefit is usually limited – it’s not meant to provide years of financial support to your beneficiaries. Younger, healthier people who want to build cash value or a significant death benefit for their families may be able to find greater value in a whole life, universal life, or term life policy.
