In search for Life Insurance?
Life insurance is not a topic most people wish to discuss, however, it is a necessity for your family’s future.
If the primary wage earner in the family passed away, who would provide the funds necessary to continue paying your mortgage and living the lifestyle you are accustomed to? Who would provide the funds for your children’s education? Life insurance is also a excellent investment tool, providing interest rates which exceed banks or CDs.
Life insurance is an essential insurance policy every family should purchase.
It is divided into three main categories:
Term Life Insurance
- Kluemper Insurance offers 10,15, 20 and 30 year terms.
- Term life insurance policy is good for a specific period of time.
- If you die during that term, your beneficiaries get a payout, known as the death benefit.
- There are two kinds of term life insurance.
- Term Insurance is purchased for a specific period of time and for a specified amount of coverage. Term insurance is available in 5, 10, 20 or 30 year increments.
- Whole Life Insurance is commonly known as permanent insurance. The policy is in effect for as long as you continue to pay your premium. This policy also earns dividends and cash value.
Whole Life Insurance
- Provides lifetime protection by paying a lump sum death benefit.
- Differ from term insurance in that they have a savings component with earning accruing referred to as cash value.
- Can take loans against the cash value which usually have a minimum guaranteed rate of interest.
- As with most life policies, whole life may be participating or non-participating.
- Cash values are considered liquid enough to be used for investment collateral and are tax-free up to the point of total premiums paid.
- If the insured dies, the death benefit is reduced by any outstanding loans.
- Premiums payable may be a single payment or fixed periodic (monthly) payment that is payable for the life of the owner or in most cases until the insured reaches age 100.
- There are many different types of whole life insurance. Learn more here.
Universal Life Insurance
- This is a type of flexible permanent life insurance.
- Savings element (like whole life insurance) which is invested to provide a cash value buildup. Allows the policyholder to use the interest from his or her accumulated savings to help pay premiums.
- To get a higher return, these policies generally don’t guarantee a certain rate.