A Brief Explanation of Life Insurance

 

Life insurance gives you the peace of mind you only get from knowing that you’ve protected your loved ones.

 

In the event of your passing, life insurance provides money directly to your beneficiaries. They can use the money for whatever they want, such as:

 

  • Make up for your lost income
  • Fund your child’s education
  • Paying off household debt
  • Paying for your funeral and other related expenses

 

In addition, Permanent Life Insurance offers a cash value component which can be put to good use during your lifetime.

 

If you want life insurance for a limited time — long enough to meet your anticipated responsibilities to those who depend on you, but not longer — Term Life Insurance may be right for you.

 

If you value added security, flexibility, cash value and lifetime coverage, some form of Permanent Life Insurance may be right for you.

 

Term Life Basics

 

  • Provides coverage for a specified period
  • Easy to understand
  • Affordable way to get maximum coverage
  • Becomes expensive after the specified period
  • You build no equity
Permanent Life Basics

 

  • Protection for your whole life, as long as sufficient premiums are paid
  • Can build equity in the form of a cash value
  • Offers flexibility and many options to choose from
  • Initially higher premiums than Term, but generally more cost-effective in the long run
Term and Permanent Life Together

 

Don’t think that you’re limited to one or the other; you may find that a combination of Term and Permanent Life meets your needs best.

 

For example, the foundation of your life insurance plan could be Permanent Life, supplemented by Term Life during your family-building, mortgage-paying years when coverage needs are typically higher.

 

Some life insurance policies can help you pay for major expenses like college tuition and estate expenses, or provide additional income for retirement or emergencies. Remember that Term Life Insurance pays a death benefit only, while different types of Permanent Life Insurance, Whole, Universal, and Variable Universal Life can supplement your income through withdrawals or loans against a policy’s cash value

Term Life Insurance

 

Life insurance that does not build up cash value and provides coverage for a specified period of time.  This is a great option for people that may not need life insurance later in life.

Universal Life Insurance

 

A Permanent Life Insurance policy which allows you, within limits, to change the death benefit and vary the amount or timing of premium payments. A part of your premium can go towards building a cash value that grows at an interest rate that varies over time, but not below a guaranteed minimum. Your cash value is available for you to use in a variety of ways, including to pay premiums.

Variable Universal Life Insurance

 

A form of Universal Life Insurance that allows you to invest your cash value in various funding options that invest in such things as stocks and bonds. You decide how your net policy values are invested, and you bear the investment risk. The premium required to maintain the death benefit, and your cash value depends on the performance of the underlying investments.

Whole Life Insurance

 

A type of Permanent Life Insurance which can provide lifetime protection with a level premium, guaranteed death benefit and guaranteed cash value. Premiums must be paid for as long as the policy is in force. Most Whole Life policies are eligible to receive dividends, if declared and paid. Dividends can be used to reduce or eliminate out-of-pocket premiums in later years.

 

Contact us to see if you can save money on your insurance by speaking to a professional independent insurance agent at Journey Insurance.

 

Let us sift through the hundreds of insurance programs to find you the most competitive rates available.  Let us do the paperwork while you spend your time doing something you actually enjoy!

 

Journey Insurance Agency * Irvine, California * 888.323.7480

 

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