We can help you choose the right life insurance plan.
Life insurance acts as a contract between an insured person (the policy holder) and an insurance company, where the insurance company promises to pay a selected beneficiary a sum of money (listed as “benefits) upon the policy holder’s death. Depending on the contract selected, other events such as terminal illness or critical illness may also receive a payment to the policy holder or their beneficiary. The policy holder will pay a premium, either in regular installments or a lump sum. Other expenses such as funeral expenses are often included in the benefits, but be sure to review your specifics with a licensed agent.
People buy life insurance for many reasons. Often it is purchased by the policy holder to offer peace of mind to the beneficiary in the event of their untimely death. As such, it would alleviate any financial hardships they may endure as a result of their death.
Something else to discuss with your licensed insurance agent, are the possibilities of a life insurance policy to act as payouts during retirement. Be sure to have your agent explain the benefits and drawbacks of such a program.
Life insurance policies are legal contracts and carry terms that describe the limitations of insured events. Exclusions will apply in many cases limiting the liability of the insurer such as suicide, fraud, war, riot and civil unrest. Consider all of these items carefully prior to purchasing a policy.
There are two major categories for life insurance.
- Protection policies – A policy designed to provide an insurance benefit for a covered event, typically a lump sum payment to the beneficiary.
- Investment policies – The main goal here is to facilitate growth of capital. These are each outlined below.
It is important to understand the three types of life insurance available.
- Term Life Insurance: Provides protection for a specific time frame, for instance, 20 years. It is generally less expensive than a Whole Life Insurance policy. Frequently term life insurance can be changed to a permanent policy.
- Whole Life Insurance: This is a form of life insurance that remains in force your entire lifetime (as long as you pay our premiums). It is important to note that whole life insurance policies can be an investment as they build value over time.
- Universal Life Insurance: Universal life insurance has flexible premiums but can also build value like the whole life policy which earns through an interest rate that changes occasionally.
To find out more about life insurance and what policy may be best for you, contact a licensed agent today at The Riccard Group today.
William K. Riccard CLU,AMTC
WHAT IS THE CLU® DESIGNATION?
A Chartered Life Underwriter® (CLU®) is a financial professional with extensive knowledge of life insurance. In most states, a CLU® designation exempts you from pre-licensing education and underwriting certification requirements. This means a CLU® has obtained a level of life insurance expertise that exceeds basic life insurance underwriting requirements.
A CLU® certification gives advisors:
- In-depth knowledge of life insurance underwriting concepts and life insurance law within the context of overall risk management
- The necessary knowledge to help clients address their estate planning needs
- An understanding of solutions addressing the life insurance underwriting needs of business owners and professionals