Life Insurance

Why it is important to have Life Insurance?

Purchasing life insurance ensures that your family will not be left with overwhelming financial problems in the case of the primary breadwinner’s death. The life insurance policy preserves the assets and offers a method to maintain the lifestyle, provide for education, pay-off the mortgages and offers many other levels of comfort in the absence of the family’s main provider. Life insurance also can provide a legal strategy for the transfer of your assets after your death such as a will, and really is quite necessary for everybody to have some level of life insurance coverage.

There are many forms of life insurance products available in the market place, and the Forbes Insurance Agency will develop the proper levels of coverage and help you choose the most beneficial type of life insurance based upon the client’s interview.

How much life insurance?  What is the best way or method to fund life insurance? Can life insurance be tied into a comprehensive health plan? All these questions and more will be answered, and a proper strategy will be developed for each client.

Term Life Insurance: Term life is the simplest and least expensive type of policy. It's pure insurance with no cash value account. A term life policy has only one function: to pay a specific lump sum to whomever you've designated, upon a specific event - - your death. The death benefit and the policy limit are the same - - a $200,000 policy pays a $200,000 death benefit. The policy protects your family by providing money they can invest to replace your salary, as well as to cover final expenses incurred by your death. The term policy terminates after the term declared at the inception of the policy i.e.: 20 year term expires at 20 years.

Other types of life insurance provide both a death benefit and a cash value account. Their premiums are larger than term life premiums, because they fund the savings account in addition to buying insurance. These policies are often referred to as cash value policies.

Whole Life Insurance: Whole life insurance provides permanent protection for your dependents while building a cash value account. Whole life monthly premiums are higher than term insurance because a portion of the monthly premiums are being invested by the insurance company. With this type of insurance, the insurance company manages the policy’s various accounts. It pays a death benefit to the beneficiary you name and offers you a low risk cash value account and tax-deferred cash accumulation. It also provides a fixed premium which can't increase during your lifetime as long as you continue to pay the planned amount. Whole life policies are managed by the Insurance provider and in some case provide an option to receive dividends from your policy, or apply those dividends to reduce your payments. It also offers you the feature to withdraw the cash value within your lifetime, or use the cash value as an instrument of equity to borrow money against.

Variable Life Insurance: Variable life insurance provides permanent protection for you and is the type of life insurance with account flexibility for the more risk-oriented policy holder. It pays a death benefit to the beneficiary you name and offers you low-risk, tax-free cash accumulation. It allows the death benefit to vary in relation to the fund returns of the cash value account, and also allows you to borrow from the policy in your lifetime.

Universal Life Insurance: Universal life insurance provides permanent protection for your dependents and is more flexible than whole or variable life. It pays a death benefit to the beneficiary you name and offers you a low risk cash value account and tax deferred accumulation. It allows you to earn market rates of interest on your cash value account, and also allows you to borrow money from the policy in your lifetime. A very attractive feature of universal life is that it offers the policyholder premium flexibility…you have the ability to pay more, pay more frequently, skip some payments if you have to and in some case pay less than the original premium amount for a limited time.

All of these offerings for Life Insurance are available through the Forbes Insurance Agency. Call : 843-297-8162