Life Insurance is not complicated or expensive when you work with one of our licensed agents. Let’s explore options to protect you and your loved ones.
Life insurance from Alliance West Insurance, Inc., can help you secure your family’s financial future by providing the funds they need to: cover burial expenses, uninsured medical bills, pay off your mortgage and other outstanding debts, and maintain a comfortable standard of living.
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.
There are a variety of life insurance policies that we can provide. The kind of policy you choose depends on your needs:
Term Life Insurance
Term Life Insurance is a low-cost way of providing maximum coverage for your family. Protection is provided for a limited number of years. The insurance expires without value if the insured lives beyond the policy period, usually 5 to 20 years. Other policy life periods are available, including 1 year annual renewable term.
Term insurance premiums will not increase during the guaranteed policy time period (term) you select. Term Life Insurance pays a death benefit only if you die during that term. Term insurance generally provides the largest insurance protection for your premium dollar.
Term Life Insurance remains in force for as long as premiums are current, provided there are no misrepresentations on the application. The insurance coverage terminates if you discontinue your premium payments.
Whole Life Insurance
Whole Life Insurance provides permanent protection that remains in force for your entire lifetime – from the date of policy issue to the date of the insured’s death, provided that premiums are paid. Premiums are set at the time of policy issue and remain level for the policy’s life. Unlike term insurance, whole life combines insurance protection and savings or cash value which builds over time. Cash value build-up may provide a source for living benefits, for example, helping pay off a mortgage, or a child’s education, or cash surrender value if the policy is ever cancelled.
Universal Life Insurance
Universal Life is a type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element (like whole life insurance), which is invested to provide a cash value buildup. The death benefit, savings component and premiums can be reviewed and altered as a policyholder’s circumstances change. Unlike whole life insurance, universal life insurance allows a policyholder to use the interest from his accumulated savings to help pay premiums over time.
Variable Universal Life Insurance
Variable Universal Life Insurance is a type of life insurance that builds a cash value. In a VUL, the cash value can be invested in a wide variety of separate accounts, similar to mutual funds, and the choice of which of the available separate accounts to use is entirely up to the contract owner. The ‘variable’ component in the name refers to this ability to invest in separate accounts whose values vary—they vary because they are invested in stock and/or bond markets. The ‘universal’ component in the name refers to the flexibility the owner has in making premium payments. The premiums can vary from nothing in a given month up to maximums defined by the Internal Revenue Code for life insurance.
This can be a confusing insurance policy. Trust that the insurance agents at Alliance West Insurance, Inc., will walk you through your options and provide you with multiple options to ensure you’re comfortable and understand what you’re getting before you purchase your policy. Contact us to learn more about the right life insurance coverage for you.