Plan Ahead With Term Life Insurance
A Term Life policy offers coverage only if death occurs during a specific period of time, which coincides with the terms in which the insured member is required to make a monthly premium. A Term Life policy pays a benefit to the beneficiaries only if the policy holder dies during the time period for which the policy was initially contracted and has remained current on their annual or monthly premium payments.
This type of policy is beneficial for parents of young children, people with debt obligations and also home buyers. It can be renewed after the initial term has ended and it may also be converted to a whole life policy. The premiums are based on your age and your health status. Purchasing a new Term policy at the expiration of your existing policy will result in a higher premium and you may not qualify if you have disqualifying health issues.
Protect Your Family’s Future With the Right Policy
Term Life is a “death benefit only” policy that you buy for a specified length of time. Think of it like leasing a car: you pay for the use of the car for a specified period and when the contract period is over, you return the car.
It is ideal for families that are just starting out, or for the family income provider who wants to make sure his or her family will be protected, but may not be able to afford, or desire a permanent life policy. However, understand that as a person ages over the period of the term, monthly premiums may increase.
It is often an ideal option to insure a second spouse, or for single people, even for children, just to make sure the often unexpectedly expensive costs of a funeral are covered. The earlier you purchase a term life policy and the healthier you are, the cheaper the premiums will be over the term of the policy.
Annual Renewable Term Life policies are those that are purchased year-by-year. The next year you do not have to prequalify. Simply choose to renew at what may or may not be an increased rate. Rates for Annual Renewable policies are at historic lows. A young healthy person can get $250,000.00 for only a few hundred dollars per year.
Chauvin Agency will help you decide if term life insurance is right for you.
Requirements of Life Insurance
- The amount you want for a death benefit
- Smoker or non-smoker
Whole Life Insurance Policies to Fit Your Needs
Whole Life Insurance is also a type of Permanent Life Insurance that has a specific face value and also accumulates cash value that can be considered as a part of your investment portfolio. It is more expensive than Term Life Insurance because of its cash value, which can even be borrowed against by the insured member.
Although premiums can be expensive, they generally remain level and are payable for life. Since premiums are based on age at time of enrollment, you can save premium money by purchasing a policy when you are younger. These type of policies, unlike Term Life Insurance, will remain in force for as long as you continue to make your monthly premiums.
A Whole Life Insurance policy provides you with a fixed amount of benefits and also a fixed amount of premium or payments that you have to make to the life insurance company. There are many benefits to owning this type of policy, such as dividend payments, cash value, secured asset for loan collateral, cash payment for final expenses such as burial expenses, estate and probate taxes. Moreover, Whole Life policies can be canceled and you can receive a rebate for any cash value that has been accumulated on that policy.
There are several different traditional types of Whole Life, each with their own unique benefits. In a Participating Whole Life Insurance, the insurance will share excess profits with the policyholder in the form of dividend payments. Non-Participating Whole Life Insurance has no shared profit benefits and the value of the policy is determined and fixed when the policy is written.
An Indeterminate Premium Policy is like a Non-Participating policy, but the annual premium can be variable. Another type is the Limited Pay policy, in which you may only be required to make a premium payment for a specific number of years and the policy will continue to provide benefits throughout your lifetime. Economic, Single Premium and Interest Sensitive are other types.
The agents at Chauvin Agency will help you decide if whole life insurance is right for you.