life insurance

People need life insurance to protect their family. But what type is best for my situation?

There are two types of life insurance: Term and permanent (Cash Value)

There are pros and cons to each side. Lets take a look!



Term is by far the most affordable type of life insurance. You can select how long you want the insurance. You can choose a term as short as ten yours, or as long as 30 years (if your young enough i.e. if you are 70, no one is going to insure you to 100) 


Once your term is over, you have nothing left. You have no more insurance, and all your premiums are gone!* If you think that you might need insurance past the first term of say 10 years, you would in the long run save money by buying 20 or more years. As you grow older, your insurance reisk cost to the insurance comany goes up each year. The insurance companies even it out for the tern of the policy. If you were to buy a second 10 year policy at the end of the first term (assuming that you could still qualify), you would have to pay higher rates. You would save money if you bought the 20 year policy instead of buying two 10 year policies.

*(There are "return of premium" policies, that will pay back all the premiums that you have paid in, without adding any interest, when the term is up, so you would have that money back. These policies cost about twice as much)



Permanent life insurance (whole life and universal life policies) can be great savings programs (they pay interest) as well as life insurance protection. These policies will continue to cover you until 100 years old or some universal life policies will insure you up to 120 years old, as long as there is cash value in the policy to pay the "mortality" charges. Some of the newer policies, (Universal Life) are "flexible" meaning that you can put more into the policy some times, and other times skip a payment. There are some rules to follow. If we do it right, these are fantastic savings plans. You can have access to a portion of your cash value TAX FREE at anytime you need it. You don't have to wait until you are 59 1/2 years old, as you do if you've put money into an IRA or 401k. If you've put enought away, why would you borrow money from a bank to buy a car and pay them interest? Pay yourself interst instead! 

Some of these policies have riders to help cover medical expenses.


Cash value life insurance is more expensive than term insurance, but will cover you for as long as you live. Some policies are designed to provide you with tax free retirement income that will last all your life! Ask us how!