What is Life insurance?

Life insurance is protection against financial loss resulting from death. It is an insurance company’s promise to pay your beneficiary a specific amount of money when you die in exchange for timely payment of premiums.

1.Universal life or Whole life – Life insurance which is permanent, as long as you pay premiums on time, and has a cash value or investment feature.

2. Term life – Life insurance provided for a period of years with no investment or cash value feature. This is just basic life insurance protection, however, we recommend an option which fixes your premium payment for a specified number of years.

3. Indexed Universal Life (IUL) – provides both premium flexibility and death benefit flexibility of a universal life policy, allowing you to  adjust your policy according to your life insurance needs. Indexed universal life also offer the option of having your cash value accumulate at interest based on the changes of a major market index.

4. Living Benefits – Most people purchase life insurance to provide a legacy of financial security at the time of their death. But doesn’t it make sense for the benefits to extend and be available for the difficult financial times they have to face if a chronic, critical or terminal illness precedes death? The industry calls the benefit an “Accelerated Death Benefit Rider.”

Why is life insurance important?

You may not think about it, but your ability to earn income is a significant asset and life insurance helps replace lost income in the event of your premature death. Here are some reasons we recommend life insurance.

1. To replace income the family would need to maintain their standard of living after the death of a wage earner.
2. To pay off a mortgage loan and other personal and business debts.
3. To create a fund for children’s education.
4. To pay final expenses, such as funeral costs and taxes.
5. To create a family emergency fund or a fund for a family member with special needs.