What You Need to Know Before You Buy.
People are living longer, and subsequently, life insurance rates have fallen. You may have seen commercials on TV advertising these new low rates on term life, but how do you know what insurance company to use? Is term life even the correct type of coverage? If so, how do you know how long of a term to get, or how much is needed?
These are all great questions that we can help you answer. Share a phone call, or better yet sit down with one of our life insurance specialists for a one-on-one consultation. We will perform our custom "Needs Analysis" where we identify the financial burdens left on your family or business over time. We can work with your attorney, or suggest one if you need a trust to help control provisions of your death benefit. Once we determine the proper amount of coverage, we will then determine the type that best fits your need, and find a carrier with a strong financial history.
Term Life Insurance
Term life comes in many different forms, and as the name implies, protects you for a set term of time. The coverage can be flat (the same benefit and premium every year) or decreasing (the benefit decreases over time, such as mortgage insurance). It is important to know how your policy works. For instance, we may uncover a 10 year financial need in the event of your death, but you may find the best rate on annually-renewable-term guaranteed for 10 years. You can also learn how to protect your insure-ability incase your health picture is different in the future.
Whole Life Insurance
Again as the name implies, whole life will provide a death benefit until the holder dies, at any age. This type of coverage typically costs more, but offers guarantees and cash-value, or an amount of money you can trade in the policy for at any time. As you pay into the policy, the cash value increases often with dividends. With a carefully constructed policy, you may be able to stop making premium payments in the future, as the dividend payments exceed your locked-in premium.
Variable Life Insurance
This is a type of cash-value coverage where your premium payments are invested in sub-accounts, very similar to mutual funds. This lets you participate in the market in a way that can alter your premium payments. Variable life insurance is not an annuity, and is designed to provide a guaranteed level of coverage.
There are many different kinds of annuities, however they all fall into the category of "fixed" or "variable" and are designed to offer guarantees, such as a specific rate of return, a structured payment or income-base. Annuities are complex, and should only be purchased along with the help of a licensed agent. Speak to a specialist at Caton Hosey today by filling out the form on the right, chatting over our live-chat, or calling 386-767-3163.