Life Insurance
What is Key Man Life Insurance? Why do I need it?
- Provides money to survivors, helps with business continuation, benefits are non–taxable
- Life Insurance for a specific length of time, 1, 5,10,15, 20, 30 year terms area available
- Premiums are based on age and health
- Premiums stay the same throughout the term, but older people will pay more than younger ones.
- No guarantee of issuance, get it when you don’t need it.
- No cash value at end of policy if you are still alive
- Least expensive type of Life Insurance policy
- Can be renewed after term expires at revised rates based on age
What is Whole Life Insurance? Why do I need it?
- Similar to the above but the policy runs until death or an attained age such as 100.
- Cash value builds up over time and is payable to you upon cancellation or attained age.
- Premiums stay the same throughout the term
- Costs more than Term Life but offers more
- Pays dividends which you can take or reinvest in the policy, increasing benefits
- Variations include Universal life, Variable Universal Life, these offer greater benefits but also more risk
What is a waiver of premium?
- An option that waives future payment of premium should you become disabled for at least six months.