Usually people buy life insurance to protect their heirs against economic loss. Proceeds from life insurance allow survivors to maintain an acceptable standard of living. These funds can be used to pay off their mortgage, provide a monthly income, or guarantee their children will have the education they need to compete in the job market.
Life insurance can be especially important if the surviving spouse works part-time or is a stay-at-home parent. If you are single and plan to marry in the future, you should consider purchasing life insurance to protect your future insurability, e.g. the right to buy life insurance in the future despite your health.
Term Life Insurance
On a tight budget? You may prefer term life insurance. Term life insurance is considered pure protection because it does not build up a cash value, but provides the most coverage at the least money. Premiums may be guaranteed to remain level for as long as 10, 15, 20, 25 or 30 years. Most term policies can be converted to permanent insurance despite any changes in your health and are renewable to a specific age.
What is the Ladder Strategy? The ladder strategy is a way of stacking several carefully timed term life insurance policies to boost coverage when you need it most. It involves having several term policies, i.e. 10, 20, and 30 years, at various coverage amounts, each ending when one of your needs ends. Physicians paying off student loans, parents raising children, and new homeowners typically need a lot of coverage to protect loved ones in case of early death. But kids grow up and start their own lives. Homeowners pay off their mortgages or downsize. And although student loans seem to hang on forever, those eventually get paid off too. When significant financial changes like these happen, coverage may need to be reduced. But life insurance laddering doesn't work for everyone. Buying a series of term life policies at once could cause problems if you don't know what financial obligations you'll have in the future. To get the right coverage while saving on premiums, you must choose the right policies for your needs. Does laddering sound like a good strategy? If yes, then let us help you get started.
Complete the information below to compare term life insurance rates from the industry's best and most competitive carriers. Once you have a better idea of your rates, contact us to make sure that the quote is accurate based on your height and weight, health and family medical history. Up to $1m of coverage may be available without a medical exam using accelerated underwriting programs offered by several of the carriers.
Permanent (Cash Value) Life Insurance
Permanent life insurance differs from term life insurance in that it has a death benefit and a tax-deferred cash value component. You may borrow or withdraw funds from the cash value for educational expenses, emergencies, etc. Permanent insurance remains in force for the lifetime of the person as long as premiums are paid or if there is enough cash value in the policy to pay your premiums on your behalf. There are several types of permanent life insurance - Whole Life, Universal Life, Variable Life, and Variable Universal Life.
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