Whether you’re looking for the affordability of term insurance, the lifelong protection and cash value of permanent insurance, or a combination of both, most companies have options to fit your needs and budget. Decide which coverage is right for you before getting a life insurance quote.
Term Life Insurance
How it Works: Term life insurance is the most straightforward form of protection. You generally pay premiums on a monthly or annual basis and your family is protected for that “term.” Most life insurance companies offer a variety of affordable term life insurance products to fit your needs, time frame, and budget.
Help provide for a family’s loss of income
Cover short-term debts and needs
Provide additional insurance protection during the child-raising years
Provide longer-term protection to help your family pay off a mortgage or to help pay for a college education
Select 10, 20, or 30 years of coverage and a guaranteed benefit. Coverage most of the time starts at $100,000, and the affordable premiums are level for the initial policy term. Once past the level premium period, premiums will increase annually. The policy is guaranteed to renew up to age 85 and is convertible to a permanent policy regardless of health, subject to age limits.
Whole Life Insurance
How it Works: Whole life insurance helps your family prepare for the unexpected. The death benefit can help replace a family’s loss of income, help with mortgage costs, educational needs, or to leave a legacy for the next generation. Over time, whole life policies build cash value that grows tax-deferred, and can be accessed during your lifetime. Whole life insurance policies from various life insurance companies offer level premiums and life insurance protection for as long as you live, provided that premiums are paid as required to keep the policy in force. Companies offer Whole Life policies that can be paid with a single premium, premiums payable to 100, or premiums payable up to a limited number of years. Policy loans do accrue interest, and any outstanding policy loans and interest will reduce the death benefit and cash value.
Universal Life Insurance
How it Works: Universal Life Insurance premiums are paid into your policy’s account value (after a premium expense charge), where it earns interest. Every month, various deductions, such as a charge for insurance protection, are then made from the account value. A Universal Life Insurance policy is a flexible way to help protect your loved ones and build tax-deferred cash value.
You have the ability to take loans or make withdrawals from the account value for your personal needs. Loans accrue interest, and unpaid loans plus interest and withdrawals will reduce the death benefit and cash value. The policy continues as long as the cash value is sufficient to cover the various deductions each month.
What will happen to your business at your death? Will your heirs need to sell the business to obtain cash to pay estate taxes and liabilities? Will your heirs and surviving owners work together harmoniously? As a small business owner, you may be able to use life insurance to help with an orderly, economical transition.
Employees are an integral part of a business owner’s success. Could your small business continue to be equally profitable in the event of the unexpected death of a key employee? Life insurance may be an option to make sure you have cash available when you need it.
A major problem facing many businesses today is attracting and retaining top-caliber employees. As a small business owner, you are aware of the importance of employee benefits and their contribution to your business success. Life insurance companies offer group life insurance to enhance the benefits offered to employees.
Key Employee Incentives
Fringe benefits involving life insurance, such as Split Dollar, Executive Bonus, and Non-Qualified Deferred Compensation allow you as a small business owner to select the employees you want to have participate, and to vary the benefits among them. These plans do not have to meet IRS requirements, and there are no IRS mandatory distribution requirements.
In short, life insurance is something that everyone needs, and with so many companies offering so many different types of coverage to meet the needs of different people, there is no reason to go without it. Life insurance isn’t a one-size-fits-all, so pick one that fits you! ν