Interested in buying life insurance, but not sure what kind to buy, how much, or if you can afford it?
Agreement or legal agreement that requires you to fund a financial obligation. As you near retirement, you will eventually need an estate planning review, especially if you have children or loved ones to whom you hope leave an inheritance. As you age, your need for life insurance will change, and finding a trusted adviser to help answer your questions is an important first step in the right direction.
What Kind? If you want life insurance for a limited time, just long enough to meet your financial responsibilities to those who depend on you, you may consider term insurance. Term policies provide coverage for a specified period of time, usually 10, 20, or 30 years. Typically, the annual premiums are the same every year, and some policies can include an option to convert the policy into permanent insurance before the insurance expires. Unlike permanent insurance, your payments will not accrue any cash value or have very much flexibility. Typical reasons for buying term insurance include covering a mortgage, protecting your household income for your spouse or children until you retire, or protecting a short-term financial interest for your business or employer. Term Life insurance provides a cost-effective solution for your temporary life insurance needs and is an easy and inexpensive way to get started.
If you value added security, flexibility, cash accrual and lifetime coverage, some form of permanent life insurance may be right for you. Permanent insurance will protect you and your financial obligations for the rest of your life, and can be constructed to accrue a cash value to increase the benefit or eventually help reduce premiums in later years. Typical policy options include flexible premiums, adjustable benefits, or the ability to buy one policy as a couple, or as a group with discounted premiums. You have the option to advance payments so your insurance expense is met prior to retirement, and your policy can even build cash to help you with life expenses during your retirement years. Some policies provide tax advantages to cash accrual, and the life-benefit is received income tax-free by your heirs. While permanent insurance may be less affordable initially, it is typically more cost-effective in the long run. Allow our advisers to help you understand your options with more clarity and help find you the right blend of life insurance policies.
Term Life – This is typically the simplest and least expensive insurance option. Term life insurance provides coverage at a fixed rate for a specified period of time. It is a benefit policy that is used primarily to cover financial responsibilities of the insured, with the benefit to be paid only if the insured were to die during the specified term. Most term life policies can be converted to a more permanent insurance solution such as whole life, variable life, or universal life insurance. There are two types of term life insurance:
Annual Renewable Term is purchased for a period of one year, with the death benefit to be paid only if the insured were to die during that one-year term, along with the option to renew after the term period.
Level Term Life guarantees a fixed premium for a given period of time, usually in terms of 10, 15, 20, or 30 years. Your premium is based on your age and coverage options, with longer terms being more expensive.
Whole Life – As the most common type of permanent insurance, a whole life policy guarantees a death benefit for the lifetime of the insured as well as a cash value account for savings. Your premium remains constant throughout the duration of the policy while payments over and above your premium are credited to your savings, which earn a fixed rate of interest.
Universal Life – Universal life policies are designed to be more flexible than other permanent Life Insurance. You are still guaranteed a death benefit for the duration of the policy as well as savings that accumulate cash value, but the flexibility of a Universal Life plan allows you to change certain aspects of your plan to accommodate life changes.
Depending on your options, you have the flexibility to change the overall value of the death benefit as well as the time and amount in which you pay your premium. This gives you the option to focus on building your policy’s cash value, or pay a lower premium and focus on guaranteed protection. It is important to note that changes to your universal life policy can affect its guarantees and limits.
Variable Universal Life – With a variable universal life (VUL) Insurance policy, you get the same flexible benefits of Universal Life while being able to take advantage of potential economic growth in the stock market. Instead of creating a cash value for savings, the value of your VUL policy is invested in professionally managed funds that reflect the performance of the stock market. This also means that as the policy owner, you assume the risk and responsibility of monitoring your own investments.
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Our life insurance agents will help you access over 50 life insurance carriers who are A-rated companies with strong financial backgrounds. We recommend selecting a strong company with years of experience and capable claims handling. You may need a resource for information and personal consultation as your lifestyle changes. We have a personal adviser ready to listen to your concerns, help you find affordable insurance coverage tailored to your needs and budget, and provide service when you need it most. At a time of loss, your family or business will need support, and our professionals will be here to provide financial aid and guidance.
Getting the right blend of life insurance policies at a price you can comfortably afford can be a complicated process, or it can be well designed by a life insurance expert that will provide you options and strategies to financially plan for the future. Many individuals consider life insurance to be the cornerstone of a sound financial plan. And while no one likes to think about passing on, life insurance can relieve you of the financial worry your loved ones may face in the event of your passing.
Your beneficiaries will be able to use your Life Insurance policy to help pay for anything from expensive funeral costs, estate taxes, and eliminating debt, paying down a mortgage, or funding a child’s education.
At Boynton Insurance Group, we know that choosing a life insurance plan is a big decision with many important factors to consider. Our knowledgeable team of insurance professionals is committed to walking you through the process and providing you with the best insurance solutions to give you and your family the peace of mind you deserve.
How Much? Our seasoned financial planners will help you determine a value of insurance that will protect your financial interests. Perhaps you are preparing for your first home purchase and want to cover your debt, or you just had a child or are getting married. Maybe you own a business and have a key employee whose loss would seriously threaten your business’ future success; you may have a Partnership