Main Life Insurance Options: Term, Permanent or Whole & Final Expense

Discussions with loved ones about life insurance are an awkward and perhaps morbid topic; for life insurance policies -- and there are a variety of them depending upon one's unique means and circumstances -- can help provide financial protection for the most important people in the deceased's life. Indeed, the reality is that you do not buy life insurance because you are going to die; rather, such a policy is purchased because those you love are going to live. Below are summaries of three of the primary types of life insurance coverage. Are you thinking, "I need life insurance agent near me"? Do you need life insurance Altamonte Springs FL or life insurance Orlando? Whether term life insurance, permanent life insurance, whole life insurance or final expense insurance; Altamone Springs, FL-based independent insurance specialist Bob Morgan can guide your coverage decision, just as he done for many Florida clients over the decades. If you are in need of a "life insurance agent near me," then Bob Morgan Insurance in Seminole County can help!

Term Life Insurance Is a Simple, Straightforward-But-Limited Time Option

A term life policy is bought to last for a specified time period; commonly 5, 10, 20 or sometimes up 30 years; and such term life insurance rates vary. Such term life insurance plans expire when that pre-defined period ends – thus the “term” name – and, therefore, a term policy payout only occurs if the insured's death occurs during the specified duration. If the insured person outlives the original and agreed upon policy period, then coverage renewal and extension may be an option; though the premiums may be higher.

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Permanent Life Insurance, AKA Whole Life or Cash Value Life

What are whole life insurance policies and what are whole life insurance benefits? Permanent life, AKA Whole Life insurance or Cash Value life insurance, provides ongoing coverage throughout the insured person's lifetime – as long as premium payments are in good standing! Unlike Term Life, these permanent policies may build cash value that a policyholder or their heirs can access under certain conditions. Thus, Whole Life premiums can be higher than for Term Life policies. Cash Value Life insurance products include several subcategories: Real Traditional Life, Universal Life, Variable Life and Variable-Universal Life, for example.

Summary of How “Cash Value” Works in a Permanent Life Insurance Policy

Premiums paid for a Permanent Life insurance policy go towards the cost of insuring you, your policy fees and building cash value. Regarding traditional Whole Life, both the death benefit and the premium are typically designed to remain constant throughout the policy period; however, the costs to insure you can rise as you grow older – especially upon living beyond age 80. Bob can explain life insurance options for seniors.

Final Expense Insurance, AKA Burial & Funeral Insurance Coverage

These types of typically small, Whole Life insurance policies are generally for people in poor health who lack other life insurance options and, thus, are in need of insurance for final, funeral expenses. Such Final Expense insurance coverage -- AKA Burial insurance policies -- are expensive; determined by the amount of coverage you get for your money.

Life Insurance: Purposeful Protection in an Uncertain World for an Unknown Future

Life insurance is arguably one of the most powerful financial instruments ever created. For a generally reasonable cost, an individual can purchase a substantial amount of security for his or her family, business or estate. Approximately 60% of American adults possess life insurance -- with about 20% of them saying they lack adequate coverarage; and 44% of younger Americans way overestimate the cost life insurance. Generally speaking, the purpose of purchasing a life insurance policy is to meet one of four primary financial objectives:

Life Insurance for One's Surviving Family & Loved Ones

If loved ones depend on you and your paycheck or other means of income, then you really need to purchase a life insurance policy. From covering funeral expenses to eliminating debt, the financial well-being of your surviving loved ones depends upon replacing your income support as quickly and reliably as possible during a very stressful and mournful period of time. Such coverage also provides a means to fulfill the dreams of and your promises to your children -- from helping pay for college tuition to wedding expenses to home downpayments, etc.; and, and for parents with special needs children, such policy protection can help pay lifelong medical needs.

Life Insurance Can Save a Business & Its Financial Health Should Key Personnel Perish

Most businesses rely on key personnel to maintain their high level of success. Should such key and vital personnel unexpectedly pass away, then an organization may be unable to recover without proper safeguards. Key-man or key-person life insurance plays a critical role in literally buying time to stabilize by keeping things afloat by preserving the knowledge base and resulting financial soundness of closely-held ventures; achieved by the policy providing an influx of cash to supplement sales, hire consultants, etc. until the emergency passes over time. Moreover, life insurance policies are commonly used to fund cross-sell purchase agreements; effectively preventing survivors from becoming partners with someone never intended.

Life Insurance Can Leave a Philanthropic & Charitable Legacy

When philanthropists pass away, so too do their charitable contributions die; unless there exists a life insurance policy that specifically names a given charitable organization as a beneficiary. With relatively low cost, the charitable proceeds can continue flowing to designated charities; thus leaving an indelible mark on those being helped through an ongoing legacy of one's philanthropic contributions.

Life Insurance Is Vital to Estate Planning | Estate Taxes, AKA the Death Tax, Ramifications

Estate taxes, also known as the generally dreaded and despised "Death Tax," remain a part of the United States' tax code. While wealthy individuals certainly need to plan in advance how their heirs will pay for the potential 40% tax rate on inherited property, the death tax can also sneak up on everyday Americans, sadly. To wit, small business (SMB) owners, farmers and property owners may find themselves with assets worth more than the current $11.58-million estate tax threshold (set to sunset to the pre-2018 $5.00-million level by 2025.) Ugh. Therefore, without proper planning by an estate, the IRS will look to liquidate assets to pay the estate tax as soon as nine months after one's passing! This asset liquidation can lead to the stressful, unwanted sale of a business, property or farmland. Fortunately, life insurance can provide the financial means necessary to avoid such a horrible asset liquidation scenario.