Life Insurance Simplified

When it comes to Life Insurance, we all know that we need it, but most of the time we don’t really know what it is, nor what it does for us, nor what it can do for us. So, this brief article will explain those topics for you.

First of all, we need to explain the difference between Term and Whole Life products. Term Life products will cover you for exactly what they say, a term of your life. So, if you want thirty years of coverage, lets say from age 35 to 65, you will pay a set premium for X number of dollars of coverage. Once you turn 65, you no longer have to pay the premium, but you also no longer have the coverage. These policies are usually used for those that have families or business interests that require that they be insured. These policies are just slightly less expensive than a similar product, which is Whole Life.

Whole Life, if started earlier in your life, will have a similar premium for similar coverage, meaning you will pay a set premium for X number of dollars of coverage. The difference is there, once you turn a certain age, the coverage doesn’t fall off. In fact, what you have paid into the account is yours to keep, AND it is GAINING value in interest bearing accounts.

Whole Life is used for those people that see it as a Future Planning tool. Whole Life can be borrowed against, withdrawn from, or even converted into different investment types when it is no longer needed as a Life Insurance policy any longer. The beauty of Whole Life is that its value has grown tax free until the time that it is used or cashed out. You only pay tax on the capital gains. If you have any questions about Life InsuranceFuture Planning, or any other benefits questions, feel free to Contact us today!

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