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Life Insurance generally falls into two categories: Term and Permanent Insurance
Most Term policies provide a guaranteed premium for a specific duration ranging from 10 to 30 years. Term insurance makes sense when you have a need that is likely to disappear at a specific point in time. For example, Term may be tied to providing coverage to last until a child is scheduled to graduate from college or until a loan is due to be paid off, such as a mortgage.
Permanent insurance is usually purchased for a longer duration and may be structured to continue to Age 100 or longer. The two major categories of permanent life insurance are Whole Life and Universal Life. Whole Life has a fixed premium that may guarantee the death benefit until a certain point in the future and does create some cash surrender value as part of its financial structure. Universal Life has flexible premiums and may be configured to continue to a future point that, with newer policies, may guarantee the insurance benefit to Age 100 or beyond. There are a wide range of options available with Universal Life due to its flexibility.
Both Whole Life and Universal Life policies that have been In Force for several years should be reviewed periodically to see if the original premium is sufficient to carry the policy to the expected duration. Whole Life policies, with nearly every insurance company, have had their dividend scales reduced due to the low interest environment. Universal Life also has similar issues in that the interest credited has been reduced.
We offer a complimentary evaluation of your older policy to see how it is expected to perform in the future, as well as discuss whether all policy provisions (such as Owner and Beneficiary, etc.) are still appropriate or need updating. We have been able to assist many of our own clients with a Policy Review and they have found that to be invaluable.
Whether you are starting a family, just need to figure out the amount and type of life insurance that makes sense for your particular situation or wish to review your goals and changing needs, the best way is to meet with one of our qualified and licensed life insurance professionals. Please give us a call at 615-371-2467 or send Email to nancy@managedben.com to set up an appointment.
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