Life Insurance

iStock_000030663698SmallWhy Is Life Insurance Important?

Few things in the insurance industry are as misunderstood as Life Insurance. For many people, the notion of thinking about their own death can be uncomfortable, and they keep putting it off for some vague time “down the road.”

If you have a family that depends on you, the time to act on Life Insurance is now. You want to be sure your spouse and children are secure in the event of your accidental death.

Two Basic Types of Insurance: Whole Life and Term Insurance

The names speak for themselves. Whole Life is a type of policy intended to remain in effect for your whole life. It pays a predetermined, fixed amount upon your death. During the policy’s duration, the insurance company uses a portion of the premiums to build cash value through investments.

Universal Life is a type of Whole Life Insurance with more flexibility to use accumulated interest to pay for premiums. It combines the lower cost of Term Life with the savings benefits of Whole Life. It breaks payments down to insurance and savings categories and allows the policyholder some flexibility in shifting funds between the two categories as life circumstances change.

Term Life has no investment component. It is intended to cover you for a specific time period, or Term, during which you pay a monthly premium. Once the term ends and monthly premium stops, the policy has no cash value. One advantage of Term Life is low cost, depending upon the age of the policyholder. Younger policyholders pay the least, but as you age the cost of premiums steadily increases.

Each category above has additional variations on policy types and benefits. Sound confusing? Don’t worry! Call Alliance Insurance Group today, and let our expert Independent Agents help you determine what type of Life Insurance best suits your needs, or fill out our online form to request a quote.