Life Insurance

What is life insurance?

Life insurance policies provide beneficiaries with lump-sum payments when the insured party passes away or after a specific period of time has passed. Life insurance provides financial security by replacing lost income and covering expenses. Life insurance can help your family maintain the lifestyle they’re accustomed to and provide longer-lasting financial security. A life insurance payout can be used for everyday expenses, retirement savings, or just about anything else your family may need.

Life Insurance Types

Life insurance consists of two basic types term and permanent.

Term insurance is less expensive and has a set timeframe. Permanent life insurance lasts your entire lifetime (assuming you continue to pay the premiums) and is divided into two sub-types: whole life and universal life. Picking which type is best for your family depends on several factors, including your budget and how the funds are accessed.

While permanent life insurance is generally more expensive than term life insurance, permanent policies can guarantee there is money for your kids and possibly your grandchildren. Benefit amounts range from $50,000 to more than $1 million and are paid even if you live past 100. A term life insurance policy, by comparison, covers you for a set amount of time.

Term Life

Term life insurance, typically available for ages 18 – 80, is the best fit for most families because it’s affordable and lasts for a set number of years before expiring. Because term life insurance is purchased for a certain period, you often won’t have to pay for extra protection that you may not need. It’s ideal for specific needs and time frames: for instance, paying off your 30-year mortgage or funding your young child’s future college tuition. Term life insurance typically pays out a tax-free lump-sum amount between $25,000 and $2,000,000 and the payments and benefit are fixed, meaning that neither changes or fluctuates during your term length.

Whole Life

A type of permanent life insurance, whole life insurance provides lifelong coverage with a guaranteed rate of return and premiums that stays the same. Whole life insurance also offers a savings component, enabling your policy to build cash value that lasts until you die.

Whole life policies are a good strategy if you’re aiming for financial certainty. Because whole life insurance can double as a tax-sheltered account, you have the option to borrow against it or leave a financial legacy to your beneficiaries. While term policies are designed to protect against relatively short-term expenses, they eventually expire; whole life insurance is permanent and can provide a guaranteed payout to your loved ones.

Universal Life

Universal life insurance is a type of permanent life insurance offering the flexibility to change your death benefit and adjust your monthly premiums. Like whole life insurance, universal life insurance coverage lasts your entire lifetime and builds cash value that you can borrow against while you’re alive. The difference is, as your finances fluctuate, you can alter or potentially skip premiums on universal life policies and increase or decrease the payout amount to your beneficiary.

Final Expense

Final expense insurance, commonly known as burial insurance, covers end-of-life expenses including the cost of your death and funeral arrangements. The average funeral now costs between $7,000-$10,000, which can be a lot for families to take on at the time of a loss. Final expense coverage ensures your loved ones have one less thing to worry about while grieving. Final expense coverage ensures your loved ones have one less thing to worry about while grieving, plus it’s affordable.

Why Crestway Group

The Crestway Group (CWG) can help you navigate all the potential Life Insurance options to customize an insurance coverage plan especially for you or a family member. Contact a team member in our Personal Lines Division to ask about assisting you in obtaining a coverage plan that will help with ease the burden of when your gone without leaving huge bills from medical and other costs.