For the average consumer it is extremely difficult to figure out how much Life Insurance is needed, and what type of policy should be purchased. This topic seems very simple on the outside and becomes confusing for the consumer once discussion of product begins. A common question may be “What product is best”, when consumers need to ask, “What product is best for me?”. All Life Insurance products have their place, whether you’re starting a family or preparing for retirement, the Insurance Agents at Carlson & Associates will help you find what you’re looking for even if you have no idea.
Understand what type of needs life insurance can fill for you or your family
Life Insurance Types
- Term Life Insurance
- Whole Life Insurance
- Universal Life Insurance
- Indexed Universal Life Insurance
Reasons to Consider Life Insurance
- Protection against outstanding debt
- Replacement of income from spouse
- Supplemental Retirement Income
- College Funding for Children or Grandchildren
- Funeral Expenses
- Unexpected Medical Expenses
Term Life Insurance
Term life insurance provides affordable, temporary coverage. Term life contains no cash value and has death benefit protection only. This might be exactly what a young couple needs who have just purchased their first home, but it’s always important for consumers to understand what they have. Many people are offered term life insurance, and have a rude awakening at retirement when they see their policy end or premium go through the roof.
Whole Life Insurance
Whole life is a form of permanent life insurance. Premium and death benefit is sure to be fixed and level with this type. There is internal cash value that grows at a guaranteed interest rate.
Universal Life Insurance
The unique characteristic of any universal life is flexibility. Consumers can be flexible with their premiums and can under or over-fund their policy. Universal life has an opportunity to grow cash value and collect interest on a tax-deferred basis. Why over-fund? With any UL, your premium goes into two sections; insurance and a cash value. Overfunding gives your policy an opportunity to grow your cash value and capture higher rates of interest. Over time this can be very valuable and a compounding effect can occur. On the other hand, if you’ve paid into a policy for a period of time, you may be able to stop paying premiums altogether, or withdraw cash value to supplement income. It all depends on what your goal is. Much more often than not, universal life is written on a permanent basis.
There are many different options for life insurance and it can be a lot to sort through. Have one of our independent agents help you find a quality company with a product that will fit your needs.