Money Talks....
Welcome to this issue of Money Talks….Are you covered? Do you have the right kind of coverage? Do you have enough coverage?
Type of policies:
Children’s Life Insurance
Term Life Insurance
ROP Life Insurance
University Life Insurance
Whole Life Insurance
Living Promise Life Insurance
Children’s Life Insurance is a whole life policy that insures the life of a minor. (15 days-17 years old) It is usually purchased to protect a family against a sudden and unexpected costs of a child’s funeral/burial and to secure inexpensive and guaranteed insurance for the lifetime of the child.
Term Life Insurance is the most basic and usually the most affordable. Policies can be purchased for a period of time (10,15,20,25,30). There is no cash value with these policies. If you die within the period of time the insurance will pay your beneficiaries the face amount of your policy. Can be used for mortgage protection or raising a young family.
Return of Premium (ROP) Life Insurance. Not as many carriers. Little more expensive. You have 2 options at the end of the term. 1. To received almost all the premiums you paid in back. 2. Take these premiums you paid in and purchase a paid up policy. It’s a nice bridge between term and permanent policies.
University Life Insurance is a permanent policy. You have the same type of coverage and cash value as you would with whole life, but with greater flexibility. Once money has accumulated in your policy, you can also vary the frequency, as well as premiums. It’s important to remember that altering your premiums may decrease the death benefit. Also, if structured correctly, you can stop payments withdraw money for 10-15 years tax free to supplement retirement and still have a death benefit.
Whole Life Insurance has a level premium through out the life of the policy. Premiums are usually higher than Universal Life. Whole Life will build cash value that can be borrowed against but will lower the death benefit and could cause a tax liability.
Living Promise Life Insurance policy that is a no medical exam whole life policy. It is a simplified underwriting. Policies are issued either level or graded. Ages: 50-85 $5,000-$40,000.
Until next time,
Diane