Insurance Types
Term Life Insurance
Term life insurance lasts for a specified number of years and then ends. You choose the term when you take out the policy, with common terms being 10, 20, or 30 years. The best-term life insurance policies balance affordability with long-term financial strength.
Types of Term Life Insurance:
- Decreasing Term Life Insurance: This is renewable term life insurance where the coverage decreases over the life of the policy at a predetermined rate.
- Convertible Term Life Insurance: This allows policyholders to convert a term policy to permanent insurance.
- Renewable Term Life Insurance: This is a yearly renewable term life policy that provides a quote for the year the policy is purchased. Premiums increase annually and it is usually the least expensive term insurance initially.
Term life insurance is attractive to young people with children because parents can obtain large amounts of coverage at reasonably low costs. Upon the death of a parent, a significant benefit can replace lost income.
These policies are also well-suited for people who temporarily need specific amounts of life insurance. For example, the policyholder may calculate that by the time the policy expires, their survivors will no longer need extra financial protection or will have accumulated enough liquid assets to self-insure.
Term life insurance is for a predetermined period, typically between 10 and 30 years. Term policies may be renewed after they end, with premiums recalculated based on the holder’s age, life expectancy, and health. By contrast, whole life insurance covers the entire life of the holder. Unlike a term life policy, whole life insurance includes a savings component, where the cash value of the contract accumulates for the holder. The holder can withdraw or borrow against the savings portion of their policy, where it can serve as a source of equity.
Whole Life Insurance
Whole life insurance, also known as traditional life insurance, provides permanent death benefit coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate. Interest accrues at a fixed rate and on a tax-deferred basis.
Whole life insurance policies are one type of permanent life insurance. Universal life, indexed universal life, and variable universal life are others. Whole life insurance is the original life insurance policy, but it does not equal permanent life insurance as there are many types of permanent life insurance.
Universal life insurance and whole life insurance are both permanent life insurance types that offer guaranteed death benefits for the life of the insured. However, a universal life policy allows the policyholder to adjust the death benefit as well as the premiums. As one might expect, higher death benefits require higher premiums. Universal life policyholders can also use their accumulated cash value to pay premiums, provided the balance is sufficient to cover the minimum due. Whole life insurance, alternatively, does not allow for changes to the death benefit or premiums, which are set upon issue.
Universal Life Insurance
Universal life (UL) insurance is permanent life insurance (lasting the lifetime of the insured) that has an investment savings element and low premiums similar to those of term life insurance. Most UL insurance policies contain a flexible-premium option. However, some require a single premium (single lump-sum payment) or fixed premiums (scheduled fixed payments).
Unlike term life, UL insurance policies can accumulate interest-bearing funds like a savings account. Additionally, policyholders can adjust their premiums and death benefits. Those paying extra toward their premium receive interest on that excess.
If you want to build tax-deferred savings and don’t expect to tap into the funds for a long time, universal life may be a suitable option. The cash value option that’s part of a universal life policy may be available for you to withdraw or borrow against in an emergency.
It’s a good idea to talk with your insurance provider to better understand your life insurance options. They can help you review your personal situation and long-term goals to choose a policy that’s a good fit for you and your family.
What is Final Expense Insurance?
Final Expense Insurance, also known as burial or funeral insurance, is a type of whole life insurance designed to cover end-of-life expenses such as funeral costs, medical bills, and other outstanding debts.Why is Final Expense Insurance Important?
It helps protect your loved ones from the financial burden of your final expenses. This insurance ensures that your family can focus on grieving rather than worrying about money during a difficult time.What Does Final Expense Insurance Cover?
Final Expense Insurance typically covers:- Funeral and burial costs
- Cremation services
- Outstanding medical bills
- Legal and probate fees
- Other end-of-life expenses
Who Needs Final Expense Insurance?
This coverage is ideal for seniors, individuals with limited savings, or anyone looking to relieve their loved ones of financial stress after their passing.How Much Coverage Do You Need?
The amount of coverage varies depending on your needs, but most policies offer between $5,000 and $25,000. It’s important to estimate your final expenses and choose a plan that meets those needs.How Does It Work?
Once approved, your policy remains active as long as premiums are paid. Upon your passing, your beneficiary receives the payout to cover the listed final expenses.Benefits of Final Expense Insurance
- Affordable premiums
- Simple application process
- No medical exam required in many cases
- Fixed premiums and coverage
- Peace of mind for you and your family
Get a Free Quote Today
Contact us now to learn more about final expense insurance and receive a free, no-obligation quote tailored to your needs.Frequently Asked Questions
Is final expense insurance the same as life insurance? It’s a type of life insurance specifically designed to cover end-of-life costs. Can I get coverage with health issues? Yes, many policies accept applicants with pre-existing conditions without a medical exam.What is a Debt-Free Life?
A debt-free life means living without owing money on loans, credit cards, or other forms of debt. It gives you financial freedom, less stress, and more control over your future.Why Live Debt-Free?
Living debt-free offers many benefits, including:- Peace of mind
- More savings for emergencies and retirement
- Improved credit score
- Less financial stress
- More freedom to pursue goals and dreams
Common Types of Debt
- Credit card debt
- Student loans
- Personal loans
- Auto loans
- Mortgage debt
How to Start Your Debt-Free Journey
Becoming debt-free starts with a plan. Here are some key steps:- List all your debts and interest rates
- Create a realistic budget
- Cut unnecessary expenses
- Pay more than the minimum payment
- Use the snowball or avalanche method
- Avoid taking on new debt
Debt-Free Living Tips
- Live below your means
- Build an emergency fund
- Pay with cash or debit instead of credit
- Track your spending
- Set financial goals and stay motivated
Benefits of Being Debt-Free
- More freedom and flexibility
- Lower monthly expenses
- Improved relationships and peace of mind
- Greater ability to invest and build wealth
Is It Really Possible?
Yes! Millions of people have paid off debt and now enjoy a life of financial freedom. With discipline, planning, and the right mindset, you can too.Get Help on Your Debt-Free Journey
If you need support, financial coaching or a structured plan, we’re here to help. Reach out today for tools, tips, and guidance to live debt-free.What is a Buy-Sell Agreement?
A buy-sell agreement is a legally binding contract that outlines what happens to a business owner’s share of the company if they die, become disabled, retire, or leave the business.Why is a Buy-Sell Agreement Important?
It protects the business from unexpected changes in ownership. It also ensures fair treatment of all owners and provides a clear exit strategy.When is a Buy-Sell Agreement Needed?
Buy-sell agreements are essential when:- There are two or more business partners
- One owner wants to retire or exit
- To plan for death, disability, or divorce
- To avoid disputes over ownership and valuation
Types of Buy-Sell Agreements
- Cross-Purchase Agreement: Co-owners buy the departing owner’s share.
- Entity-Purchase Agreement: The business buys back the departing owner’s share.
- Wait-and-See Agreement: Combines features of both types and allows flexibility.
How is a Buy-Sell Funded?
Most agreements are funded using life insurance or disability insurance. This ensures that funds are available when the buyout event occurs.Key Elements of a Buy-Sell Agreement
- Triggering events (death, disability, retirement, etc.)
- Valuation method for the business
- Funding mechanism (e.g., life insurance)
- Terms of the buyout
- Dispute resolution methods
Benefits of a Buy-Sell Agreement
- Prevents unwanted ownership changes
- Ensures business continuity
- Protects families and heirs
- Provides a clear and fair valuation method
- Reduces conflict between partners
Who Should Have a Buy-Sell Agreement?
Any business with multiple owners, including partnerships, LLCs, and closely-held corporations, should have a buy-sell agreement in place.Set Up Your Buy-Sell Plan Today
Protect your business and your legacy. Contact us today to learn more about buy-sell agreements and how we can help you create a customized plan.What is Key Person Insurance?
Key Person Insurance is a life insurance policy a business takes out on an essential employee whose knowledge, work, or leadership is critical to the company’s success. If that person dies or becomes disabled, the policy provides financial protection to the business.Why is Key Person Insurance Important?
The loss of a key individual can disrupt operations, reduce revenue, and cause long-term damage. Key person insurance helps ensure business continuity and provides funds to recover or replace essential talent.Who Qualifies as a Key Person?
- Business owners or founders
- Top executives or decision-makers
- Sales leaders or revenue generators
- Specialists with unique skills or knowledge
- Any individual whose loss would significantly impact the business
What Does Key Person Insurance Cover?
It provides a death benefit to the business, which can be used for:- Hiring and training a replacement
- Paying off business debts
- Stabilizing the business during transition
- Covering lost profits
- Reassuring investors or lenders
How Does Key Person Insurance Work?
- The business is the policy owner, pays the premiums, and is the beneficiary.
- The insured person must consent to the policy.
- If the key person passes away or becomes disabled, the policy pays out to the business.
Benefits of Key Person Insurance
- Protects business operations
- Builds confidence with investors and lenders
- Helps avoid financial disruption
- Supports succession planning
- May provide tax advantages (consult a tax advisor)
Who Needs Key Person Coverage?
Key Person Insurance is recommended for small to mid-sized businesses, partnerships, startups, and corporations that rely heavily on one or two key individuals.Get Started with Key Person Insurance
Protect the future of your business today. Contact us to learn more about how Key Person Insurance can secure your company’s most valuable assets — your people.What is Mortgage Protection Insurance?
Mortgage Protection Insurance is a type of life insurance designed to pay off your mortgage if you pass away, become disabled, or lose your job. It helps your family stay in their home during difficult times.Why Do You Need Mortgage Protection?
Your home is one of your most valuable assets. Mortgage protection ensures that your loved ones won’t lose their home due to financial hardship after your death or during a health crisis.How Does Mortgage Protection Work?
- You purchase a policy tailored to your mortgage amount and term.
- If a covered event occurs (death, disability, or job loss), the policy pays your mortgage lender directly or your family, depending on the plan.
- This keeps your mortgage current or pays it off entirely.
What Does It Cover?
- Death – Pays off the remaining mortgage balance if the policyholder dies.
- Disability – Provides monthly payments if you become unable to work due to injury or illness.
- Job loss – Some policies include short-term help if you lose your job unexpectedly.
Benefits of Mortgage Protection Insurance
- Helps your family stay in the home
- Easy to qualify – no medical exam in many cases
- Level premiums – fixed monthly cost
- Fast approval and simple application process
- Peace of mind knowing your home is protected
Who Should Consider It?
If you have a mortgage and people who depend on your income to make payments, mortgage protection is worth considering — especially for homeowners with young families or single-income households.How is Mortgage Protection Different from Life Insurance?
While both provide financial protection, mortgage protection is designed specifically to cover your mortgage. It usually pays the lender directly, while traditional life insurance pays a lump sum to your beneficiaries for any use.Get Your Free Mortgage Protection Quote
Don’t leave your family’s home at risk. Contact us today to get a no-obligation quote and find a policy that fits your needs and budget.What is Indexed Universal Life Insurance (IUL)?
Indexed Universal Life Insurance, or IUL, is a type of permanent life insurance that offers both a death benefit and the opportunity to build cash value based on the performance of a stock market index, such as the S&P 500.How Does IUL Work?
- Part of your premium goes toward the life insurance death benefit.
- The rest is placed into a cash value account that grows based on the performance of an index.
- Your money is not directly invested in the market, so you are protected from market losses.
- Most IUL policies include a guaranteed minimum interest rate and a cap on maximum returns.
Key Features of IUL
- Permanent life insurance coverage
- Tax-deferred cash value growth
- Flexible premiums and death benefits
- Potential for higher returns compared to whole life
- Access to cash value through policy loans or withdrawals
Benefits of Indexed Universal Life Insurance
- Build long-term cash value
- Supplement retirement income tax-free (if structured properly)
- Provide financial protection for your loved ones
- Enjoy downside protection with market-linked growth
- Flexibility to adjust premiums and benefits over time
Is IUL Right for You?
IUL can be a smart choice if you are looking for:- Life insurance coverage with investment potential
- Tax-advantaged retirement income
- Flexible options for premiums and benefits
- Protection from market losses
Indexed vs. Traditional Universal Life
Traditional universal life offers a fixed interest rate on cash value. IUL ties growth to a market index, which may offer higher returns with some risk limitations (caps and floors).Indexed vs. Variable Life Insurance
With variable life, your cash value is directly invested in the market and can lose value. IUL offers market-linked growth without direct exposure to losses.Common Indexes Used in IUL Policies
- S&P 500
- NASDAQ 100
- Dow Jones Industrial Average
- International and blended indexes
