Life Insurance helps you to protect the ones that truly matter to you, even after life. Our plans are created to provide substantial financial assistance to your family as well as aid you in building an investment portfolio through the years. By making a wise choice, you can be able to grow your assets and protect your beneficiaries with our coverage.
We will discuss our full range of life insurance options including Whole, Term, and Universal.
Contact Frost & Remer today to schedule an appointment for your full risk assessment.
Life insurance provides peace of mind. It’s a policy that financially protects loved ones in the event of your death. There are multiple ways to use this insurance as well as several types of coverage.
Frost & Remer can help you decide what policy will give you the coverage and flexibility that you need, while still being affordable.
With the right policy, you’ll know that your final expenses are covered, and that you can provide for those you care about most into the future.
What is life insurance?
This type of insurance is a protection policy in the event of your death. It can be used to cover lost income, outstanding debts, and funeral expenses.
It provides your loved ones with a lump sum of money, issued after death. There are two main types:
- Temporary: Term life insurance
- Permanent: Universal, whole, or variable life insurance
What do the different types of policies cover?
The varying types of insurance can address your financial needs at different points in your life.
Understanding the different types of coverage and what they offer can help you see the benefits. The differences inform what kind of policy would be the best option for you.
Term Life Insurance
Term life insurance provides coverage for a set period of time, usually 20 or 30 years. It is generally the most affordable option. The reason being that term life insurance does not have a cash value until the insured person passes away.
If the insured person passes away during the term of the insurance, their beneficiary will receive a payout from the policy. If you die after the term policy ends you receive no benefits. Term life insurance can be extended by purchasing a new contract or converting to permanent life insurance.
Permanent Life Insurance
You can choose a more permanent coverage option, such as a universal, whole, or variable life insurance policy.
Universal Life Insurance
Universal life insurance has two types of benefits: part life insurance and part savings and investment. It’s more expensive than term life insurance but it provides access to funds that you wouldn’t be able to use with term life.
This coverage is designed to be more flexible than other insurance policies by allowing the policy holder to determine how much premium to pay within a range. It works for the insured as a savings and investment because the policy can be borrowed against and paid back.
Whole Life Insurance
Whole life insurance is different from term life in that it is a lifetime policy (where term is only for a set period of time). This makes it similar to universal insurance.
It is also similar to universal in that there is a cash savings component. Whole life insurance is less flexible than universal life insurance but the cash investment returns are higher.
Usually, you only pay premiums for a whole policy until a certain age, such as 65 years, or for a period, such as 20 years.
Variable Life Insurance
Variable life insurance is another permanent policy that has an investment component. It provides a cash-value account, which is invested in sub-accounts within the policy. These sub-accounts serve similarly to mutual funds, however they are exclusive to this form of insurance.
Why do I need life insurance?
A policy can provide confidence that your final expenses will be covered if the unfortunate happens. There are many reasons this is beneficial, depending on your personal situation.
For some, it means that funeral costs will be less of a financial burden for loved ones.
For others, it’s an opportunity to supplement lost income if they were to pass away or to provide financial protections for loved ones after they die.
There are others for whom the insurance is part of an investment portfolio and retirement planning.
An employer might also provide coverage. It’s important to make sure that the policy is meant to be paid to the beneficiary of your choosing and not paid to the business.
It is also possible that the employer-provided policy will not cover your loved ones or expenses as well as you would like. In this case, having an additional policy would be beneficial.
What does life insurance pay for?
When considering what type of coverage is right for you and how it can be most helpful, you’ll want to understand what your policy will pay for should you pass away.
This includes the following:
- End of life costs, such as funeral expenses
- Replacing lost income
- Paying estate taxes
- Charitable contributions
The right policy can ensure that the necessary funds go directly to your chosen beneficiary or beneficiaries, allowing them to quickly access financial resources in the event of your death.
What does life insurance cover?
A policy provides coverage in the event of the insured’s death by natural causes, accidental death, suicide, or murder. Certain types of death, however, may have stipulations regarding their payouts.
There may be stipulations around suicide payouts depending on how long the policy has been in place. There are also stipulations around death by murder, as the beneficiary cannot be responsible for the death of the insured party.
How much does life insurance cost?
When deciding what policy is right for you, you’ll need to weigh the benefits with the costs. There are multiple areas to consider in the cost of a policy, including the following:
- Type of life insurance
- Amount of coverage
- Age of the insured
- Health of the insured
- Credit Score
The cost will depend on your situation and your needs. Because these factors can vary so much, this insurance can have a wide average range.
A healthy 30 year old, non-smoking man can pay on average less than $30 per month for a $250,000, 20-year term life policy.
In contrast a healthy 30 year old purchasing whole life insurance will pay closer to $130 per month for $100,000 coverage, but their policy will not expire.
How Frost & Remer can help
Life insurance can help you protect those who truly matter to you, even after life. Find a policy that will help your family with final expenses and their own finances, as well as one that can help you build an investment portfolio throughout the years.
Frost & Remer can help you choose a policy that allows you to grow your assets and protect your beneficiaries.
Schedule a virtual appointment with us for a free full risk assessment and to discuss our range of life insurance options so that you can find the right policy for your life.