Life Insurance: the lowdown

For many, the thought of life insurance can be intimidating. No one wants to think about death. But, if you want the ones you love to be protected in the event of your untimely passing, it’s definitely something you need to act on. We spoke with our expert insurance advisor, Jay Davis of Country Financial, to find out more and walk the path so many of us – it seems – are reluctant to go down.

The main purpose of life insurance is to provide money for your loved ones if something happens to you. Your family will continue with their lives after you have gone and so this is a great way to help protect them. What’s also worth remembering is that with a permanent life policy, which builds cash value, the cash value may be used for your own retirement, your children’s college tuition fees, or perhaps leaving a legacy for the next generation or two. At the very least life insurance will help with the debts and expenses that follow the death of a family member from funeral costs to day-to-day living expenses.

There are three types of life insurance: term life, whole life, and universal life.

Term life provides valuable life insurance coverage for the length of time you choose. Term life insurance also provides the highest coverage for the lowest price for a specific period of time. In the instance of your passing, during the policy term, your beneficiaries will receive the death benefit tax free. Term life insurance is often a good option for younger individuals and families that need a lot of coverage, but may not have a large budget. Another benefit of term life insurance that surprises most people is the fact that your term life contract can be converted to a whole life policy at any time without any additional medical underwriting. 

Whole life insurance gives you permanent protection for the rest of your life. If you want to pay level premiums, have the cash value increase over time, ensure death benefits are paid income-tax free and want the opportunity to take loans or withdrawals from your policy’s cash value a whole life policy is a good choice for you. You can also customize with add-ons such as child term rider, spouse term rider, accelerated benefit if you become terminally ill, guaranteed insurance options, and long-term care accelerated benefit to name a few. For more information about these additional coverage options visit my website or contact me.

Universal life insurance, much like whole life insurance, provides you with permanent coverage for life. However, your premiums and death benefit amount are flexible, unlike whole life insurance. Within certain limits, you can change the amount and frequency of the premiums you pay, and can choose to increase or decrease your policy’s death benefit, subject to evidence of insurability. Universal life insurance affords you the flexibility that other policies do not. For example, you may have changing needs or uncertain life events, you may want a policy with a cash value that increases over time, or you could want the opportunity to take loans or withdrawals from your policy’s cash value. Again, there are a number of coverage and policy variations, which why it’s important to sit down with a trusted advisor and evaluate your options.

Life insurance doesn’t need to be scary. In fact, it’s the complete opposite. Imagine how scary it might be to face the cost of an unexpected funeral, catering, the purchase of a casket etc. when you’re already dealing with all of the emotions that come with the death of a loved one. Or you’re left with young children to look after and support, a mortgage, and debt? Worse still imagine you were gone and your partner or spouse was the one left behind. To be honest, let’s face it, life insurance isn’t a when or a maybe, but a now and a must.

Too often, too late comes too soon…

If you have any questions or would like to meet with Jay Davis of Country Financial get in touch on 217 698 3480 or email