Life insurance offers valuable protection from the invaluable people in your life.
Protecting your loved ones is the main priority when choosing a life insurance plan. All life insurance policies are designed to pay a benefit when someone dies.
According to Westmont-based TW Group, Inc., which provides insurance and financial services, deciding on the right life insurance policy depends on your future goals.
The two most common types of life insurance are Term and Whole Life policies.
The advantage of whole life insurance is the death benefit and premium will typically remain the same for the duration of the policy. These policies also build cash value that may be withdrawn or loaned similar to a savings account.
Whole life insurance can be used to cover long-term needs such as paying for funeral and burial expenses, providing an ongoing income for your family or as payment on a mortgage or large debts.
Because premiums remain the same for the life of the policy, young adults should consider starting a life insurance policy – even if you don’t have a family or mortgage to protect. You can lock in rates while you are young and healthier, and add more to the policy later in life.
If you’re considering life insurance in your golden years, these policies can be advantageous for other reasons. While most people only think of using insurance to help pay estate taxes for large estates, more often they are use to make up for the loss of income from pensions and social security when a partner passes a way. Now days many clients are adding a long term care feature to their insurance policy. This helps the family if/when care is needed later in life has an alternative to a traditional long term care policy.
Besides term and whole life there is also universal life. Universal comes in three types depending on the method used to credit the policy (fixed, indexed, and variable). Universal gives more flexibility in paying the premium and also might create more risk. It’s important to have a review of these policies on regular bases to insure they are performing the way you want them to.
Consult with an agent at TW Group, Inc. to gain guidance through the different types of insurance policies available to help you chose the policy that will best fulfill your needs and goals.
Carey Sunderlage, TW Group Inc., 850 N Cass Ave., Westmont IL 60559, 630-737-0300 www.twgroupinc.com