value as you grow older. In many cases, it’s more flexible than term life and designed to change according to your changing needs. It’ll also help you take care of the people who depend on you financially. A permanent policy may bring more value to a person that has good cash flow. A permanent policy is significantly more expensive than a term policy.
When to Get a Term Policy?
Term life lasts a certain period of time and then must be renewed or replaced in order to continue. This makes it a good choice if you’re unable to afford a permanent policy and only foresee a need for a certain time. Term life is an excellent choice for young families who have a greater need for insurance when their children are young.
Benefits of Whole Life Insurance vs. Universal Life Insurance
Whole Life Benefits
The policy never has to be renewed as long as premiums are paid.
• The premiums remain the same through the payment period.
• The accumulating cash values act as a savings element.
• Some policies include the possibility of receiving dividends.
• Non-forfeiture options allow the policy holder to retain some benefits even if unable to pay the premium.
• There are guarantees which last for the life of the contract if premiums are paid.
Universal Life Benefits
• The amount and frequency of premium payments is flexible although there are certain requirements.
• There is also flexibility in the amount of the death benefit, but it is subject to rules requiring the policy to maintain its status as insurance.
• You have the ability to take partial withdrawals from the cash value of the account.
• In most contracts there are guarantees which, if premiums are paid, will last for the length of the contract.
Beneficiaries & Contingent Beneficiaries
A beneficiary is the person or entity you name to receive your death benefit. Beneficiaries are often spouses, children, and other family members, but you can name a friend or even a charity. Usually, you name a secondary or contingent beneficiary to be next in line to receive your benefit if your first beneficiary dies before you.
If you believe life insurance may fit your lifestyle, consulting with a financial professional may help with making a decision. Contact me for more information.
312-952-8040/Cell * 312-243-3907/Office * [email protected] * www.1stcig.com.