top of page

Life Insurance 101

What is life insurance?

 

Life insurance is a great generational wealth tool!

​

 

  • Life insurance ensures that in the event of your death, your loved ones (beneficiaries) are paid money, at the sum/value of your life insurance policy.

​

  • Life insurance is basically a financial gift, that takes the financial burden off of your loved ones by giving them the money you wanted them to have. 💕

 

We will provide additional information about these plans and discuss which option works best for you, based upon your goals!

​

Below is a brief introduction into the various types of life insurance plans. 

​

Working with Laptop at Home
Working with Face Mask

 

We will schedule a video or teleconference call with you to discuss life insurance options.

​

You will be asked to complete some confidential information on your health, occupation and lifestyle.

​

These factors determine the amount of your life insurance policy and your premiums.

​

In the case of a life insurance policy, the age at which you begin coverage will determine your premium amount, along with other risk factors (such as your current health).

​

The price of the premium depends on a variety of factors, including:

 

​

Once approved, you will sign and complete your documents and submit your insurance premium.

 

When you sign up for an insurance policy, your insurer will charge you a premium.

 

This is the amount you pay for the policy.

 

Policyholders may choose from several options for paying their insurance premiums.

 

Some insurers allow the policyholder to pay the insurance premium in installments (monthly, quarterly, semi-annually, annually, etc.) while others may require an upfront payment in full before any coverage starts.

​

​

​

Definitions

​

Beneficiary: A beneficiary is whoever you choose to receive the payment, upon your death (i.e. spouse, children, grandparents, etc.).  

​

Premium:  The amount you pay towards your policy (i.e. monthly, quarterly, annually)

​

​

​

How Does Life Insurance Work?

Types of Insurance Policies

Term Life Insurance

 

Term life insurance:

 

is the most affordable life insurance policy.

Term insurance covers your life for a specific amount of time that you choose. 

 

Terms periods are usually 10, 20 or 30 years.

For example:

 

You have a $50,000, 10-year term policy. 

 

You pass away within the 10 year term.

​

The life insurance company will pay your beneficiaries the $50,000.






 

A Note about Premiums

Premiums must be paid in order for continued coverage and death benefit pay out. 

Whole Life Insurance (WL)

Whole Life Insurance:

 

is guaranteed life insurance coverage, that provides coverage for the insured's entire life. 

Whole life has cash growth, which means your policy value may increase over time.

 

You can borrow against the cash value of the policy, without having to apply for a loan. 

 

There are different whole life designs.


We will explore these options to make sure you choose what's best for you. 

Variable Universal Life Insurance

Variable life is for those looking to invest in stock markets.

 

Due to the change of market values, the value of this policy can fluctuate, including increase in value and a possible decrease. 

 

​

Universal Life Insurance (UL)

Universal Life: 
 

offers flexible premiums and coverage amounts.  

​

For example:

 

If you lose your job and can no longer afford your regular premium, you can adjust this amount. 

Universal life insurance comes in several forms:

​

  • Guaranteed universal life: provides a guaranteed death benefit.

​

  • Indexed universal life: The cash value component *is linked to a stock market index, which fluctuates based on market, which can result in an increase or decrease in value. 

​​

  • Variable universal life: *These policies allow the insured to invest the cash value component in a variety of securities like stocks, bonds and mutual funds.

​

*This choice can potentially provide higher returns, but it also carries an increased risk.

Burial Insurance

Covers final expenses so that your family can pay for your burial.

Paid within a couple of days following your passing.  

​

We have an amazing policy that even assists you with planning. 

bottom of page