The purpose of life insurance is to fill the gap of lost income and provide security when a partner or loved one dies.
Below are three popular life insurance policies explained:
Term Life insurance is generally the least expensive way to purchase a substantial death benefit and provide pure death benefit coverage. If the life insured dies during the term, the death benefit will be paid to the beneficiary.
Common term periods are 10, 20 and 30 years and the premium is locked in for that period. However, the client is entitled to cancel this premium at any time.
Whole Life insurance is guaranteed to remain in force for the insured's entire lifetime, provided the required premiums are paid or the policy’s maturity date has been reached. The premiums for whole life insurance are typically much higher than those of term life insurance, for which the premium is fixed for a limited term. Whole life policies have a cash value component as well, making this type of policy suitable for clients looking for long term growth and the added tax advantage of cash value growing tax-deferred. Many of our clients purchase this policy to help supplement retirement income.
Universal Life insurance, like whole life insurance, is designed to be a permanent insurance policy that lasts throughout the lifetime of the insured.
Typically, there is less emphasis on cash value build up and therefore premiums can be significantly lower than whole life insurance, yet still more expensive than term insurance.
There are many variations of term, whole and universal life insurance. Lyons Global has written thousands of policies, ranging from modest term policies to policies in excess of $140 million. At Lyons Global we deeply value every client no matter the policy, its complexities or its overall value and are here to help you choose the policy that best suits you and your unique needs.