A Few Things To Consider When Purchasing Life Insurance
It's important to be familiar with the coverage's outlined in your policy.
When comparing policies make sure that you are comparing coverage's,
not all policies are created equal!
After you find the policy that best fits your needs, it should then be
reviewed annually as your needs and the market change.
Who Needs Life Insurance?
Anyone who wants to protect their families, loved ones, spouse, children, etc. from their unexpected or unprepared death. Most people will need some form of life insurance to take care of those left behind.
Some Common Terms and Types of Life Insurance Policies:
Term Insurance- This policy covers you for a specified period of time. You select the death benefit and term period of coverage. These periods are usually one year, 10 years, 20 years, or 30 years. The rate is locked in at the increment and price you select.
Advantage: You can receive higher coverage amounts at an afforable cost during younger years.
Disadvantage: As you get into retirement age and older, this type of insurance gets more expensive. You also have no coverage after the policy expires.
Whole Life Insurance- These policies will cover you for a lifetime unless you cancel or cash in the policy. They also have a cash fund that accumulates cash value. These policies can be cashed in for that cash value amount, however, there will not be much cash value in the first few years.
Advantage: Price is locked in at the age you are when you purchase the policy and does not increase. Cash Value and Death Benefit increase after the first few years until death or the policy is cashed in.
Disadvantage: It is more expensive then term insurance.
Universal Life- This policy has a flexible premium and can be adjusted over time to meet your changing needs. This policy also accumulates cash value.
Advantage: Flexible premiums and coverage that can be adjusted over time.
Disadvantage: You may need to pay more into the policy as you get older to keep the policy from canceling.
*Starwood Insurance Group has additional types of Life Insurance products, please contact us for more information.
* Please note that these are general descriptions, your policy
may or may not reflect these types of coverages.
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