You want to protect what matters most in your life: your loved ones. With life insurance, you help to ensure that the financial needs of your family are met in the event of your death. This means peace of mind for you now, knowing your family will be secure in the future.
If you are business owner or a “Key Person” in an organization, you may you need to plan ahead for a smooth business transfer of your interest in the business or provide assistance to your organization for the financial burden they might incur due to your premature death.
How Much Insurance Do You Need?
This depends on a few factors. Generally, the rule of thumb for a family is 10 times your salary; however, as life changes, your insurance needs might, too. It’s a good idea to reassess your needs annually to make sure you have enough to properly protect your family. The needs for a business owner or key person insurance is a little more complicated but we can assist you in helping with that determination.
Term Life Insurance
Term insurance is the most basic type of insurance. You can buy protection for a certain amount of time (or term) such as 5, 10, 15, 20 or 30 years. During that time, the coverage and the cost remain unchanged. If you die before the term is over, your beneficiary gets the death benefit stated in the policy. If you live beyond the term, in most cases, the policy will renew but at a substantially higher cost.
Permanent Life Insurance
Permanent Life Insurance is designed to provide a cash value and provide flexibility in your life insurance planning. Depending on exactly what type of policy you purchase with this type of insurance, after selecting an initial premium and death benefit amount, you can decide when and how much you want to pay into your policy. You can increase payments to build additional cash value, decrease the death benefit amount, decrease payments or even skip payments as long as your cash value is adequate to cover the cost of insurance charges and other policy related expenses.