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Discover a comprehensive range of insurance solutions offered by more than 80 carriers on our platform and safeguard your loved ones’ future with a life insurance policy.
There are two main types: term and permanent life insurance. Term insurance covers you for a specific duration, while permanent life insurance ensures your beneficiaries receive a death benefit that lasts a lifetime, providing them with financial security whenever the inevitable occurs. Moreover, certain permanent policies grant you the chance to accumulate cash value, which can be utilized according to your preferences. Life insurance can also be used as a tool to build a legacy.
How does Permanent Life Insurance Work?
Life insurance provides financial protection for your loved ones if you pass away. There are two main types – term and permanent.
With term life insurance, you pay premiums for a set period of time, like 10 or 20 years. If you die during that term, your beneficiaries receive the death benefit tax-free. At the end of the term, coverage ends unless you renew.
Permanent life insurance has the potential to last your whole life as long as you pay the premiums. It has a death benefit that your beneficiaries receive tax-free if you die at any point. Permanent life insurance also builds cash value that you can borrow against if needed.
The death benefit from both term and permanent life insurance goes directly to your beneficiaries, bypassing probate and avoiding income taxes. This ensures your loved ones are taken care of financially if you die unexpectedly.
Who should consider life insurance?
Having life insurance is important when others rely on your income, or they will be burdened by final expenses when you pass away. Getting coverage when you’re young and healthy locks in lower premiums that you can maintain over your lifetime.
Term life insurance is an affordable option that provides temporary protection for your family until your kids grow up or your mortgage is paid off. Permanent life insurance continues coverage indefinitely and accumulates cash value that can be accessed when needed.
No matter where you are in life, some form of life insurance ensures your loved ones won’t be left struggling financially when you’re gone. It’s a way to plan ahead and gain peace of mind, knowing they’ll be taken care of.
Life insurance can help with your financial goals
- help with your mortgage
- help with other debt including business and student loans
- help with college expenses
- help the retirement goals of your spouse
Life Insurance Types
Term Life Insurance
- Term life insurance offers affordable, temporary coverage for a set period of time, known as the term. During this term, you pay premiums to keep the coverage active. Many term life policies allow you to convert to permanent life insurance down the road if your needs change.
When shopping for term life insurance, you can apply online through insurance providers like Haven Life for a quick approval. Alternatively, you can connect with a financial advisor who can review your specific situation and recommend the right type and amount of life insurance to protect your loved ones.
Whether you prefer the convenience of an online application or personalized guidance, term life insurance is an accessible way to gain coverage for a certain number of years. To find the policy that fits your budget and goals, you can always discuss available options with an advisor or insurer.
Permanent Life Insurance
- Whole life insurance provides lifetime coverage and tax-advantaged savings. This permanent policy guarantees a death benefit payout to your beneficiaries if you pass away. It also builds up a cash value fund that grows tax-deferred over time. You can borrow against this cash value if you need access to funds while living. Whole life insurance also pays dividends, which are based on the insurer’s financial performance. These non-guaranteed dividends can be taken as cash, used to purchase additional paid-up insurance, or left to gain interest. In short, whole life insurance gives you a death benefit, cash value fund, and potential dividends – financial protection and savings in one policy.
Universal Life Insurance
- Universal life insurance shares similarities with whole life by providing lifelong coverage and potential cash value growth. However, universal life offers more flexibility in how you pay premiums. With Universal Life insurance, you can adjust your premium payments up or down as your budget and needs change, while still maintaining your policy’s death benefit. This gives you the ability to manage costs during periods when you need to reduce spending. The cash value can also be used for loans if you need access to funds while living. In short, the adjustable premiums of universal life allow you to customize your policy to fit your evolving financial situation over your lifetime, with the death benefit and tax-deferred cash value accumulation remaining in place regardless of how premium payments are adjusted.
Variable Universal Life Insurance
- Variable universal life insurance offers the premium flexibility of universal life along with investment customization. With this policy, you can adjust premium payments up or down over time to fit your budget. A portion of each premium gets allocated to investment subaccounts that you select from a range of options. This allows you to tailor your policy’s cash value accumulation to your risk tolerance and goals. The death benefit remains in place no matter how the investment subaccounts perform. In short, variable universal life gives you flexible premiums, lifelong protection, tax-deferred cash value growth, and involvement in directing your premium investments. It provides permanent life insurance suited to your changing needs and desire for market-based investment choices.
What is the process for getting a life insurance policy?
If you choose to work with a financial professional, the process of getting a life insurance goes llike this:
Analyze
In your initial phone call, the financial professional will ask you some questions to understand your financial goals and objectives.
Recommend
After looking at your entire financial situation, the financial professional will provide you with a list of suggestions to fill in the gaps so you can choose the products best suited for your current situation.
Purchase
If you feel satisfied with the recommendations, the financial professional will work with you to secure the products and services to ensure your financial future. This step may require an additional medical exam.
Review
Your personal financial professional will work with you and do periodic reviews to help you monitor the chosen strategies and help you in their full capacity to continuously meet your goals.
