What is Life Insurance?
Life insurance pays out a sum of money either on the death of the insured person or after a set period of time.
Common Types of Life Insurance
Term Life Insurance
- Term life insurance or term assurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. If the life insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.
Whole Life Insurance
- Whole life insurance, or the whole of life assurance, is a life insurance policy that remains in force for the insured’s whole life and requires (in most cases) premiums to be paid every year into the policy.
Universal Life Insurance
- A type of permanent life insurance.Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance (COI) charge, as well as any other policy charges and fees which are drawn from the cash value, even if no premium payment is made that month. Interest credited to the account is determined by the insurer but has a contractual minimum rate of 2%. When an earnings rate is pegged to a financial index such as a stock, bond or other interest rate index, the policy is an “Equity Indexed Universal Life” contract.
Variable Universal Life Insurance
- Variable Universal Life Insurance is a type of life insurance that builds a cash value. In a VUL, the cash value can be invested in a wide variety of separate accounts, similar to mutual funds, and the choice of which of the available separate accounts to use is entirely up to the contract owner. The ‘variable’ component in the name refers to this ability to invest in separate accounts whose values vary, they vary because they are invested in stock and/or bond markets. The ‘universal’ component in the name refers to the flexibility the owner has in making premium payments. The premiums can vary from nothing in a given month up to maximums defined by the Internal Revenue Code for life insurance.
Palmdale Insurance Professionals is dedicated to helping you find the best life insurance policy while saving you as much money as possible! How do we do that? Simply put, our technology and relationships are what enable us to pass the savings onto you.Life insurance companies are constantly calculating and updating rates based on the changing demographics of the US population. Palmdale insurance Agency is connected to the databases of the leading carriers to help you find the best deal while using the most up-to-date rates. What’s better is that our service is 100% free and super-fast! All you have to do is.
- Tell us about yourself and your coverage needs.
- See your custom-results and start comparing multiple quotes.As you are shopping around, there are certain questions that you should ask yourself.The best one to start with is: “How much coverage do I need?”To give you an idea, most people opt for a Term Policy with about $250,000 in coverage. Why this amount or any amount of that matter?
The answer is that it all depends on how much debt you would need to pay off and how much income you would need to replace in the event you are no longer around to provide for your loved ones.Get a secured free quote from multiple carriers. In the event of a tragedy, life insurance proceeds can help cover everyday expenses, like the mortgage and household bills.
The cash received from a policy (the death benefit) can help protect your family from being burdened with debt. In addition to helping meet your family’s immediate financial needs, life insurance can also be used to help keep a business thriving, help finance future needs like your children’s education or supplement your retirement funds.
You may know the distinct pride you get in purchasing your own home or car. Ownership can give a certain comfort, a certain satisfaction that your financial stability is solid, secure, and even permanent. Wouldn’t you like to feel that way about your family’s financial future – even if you weren’t around to provide for them? When you purchase life insurance, you select a plan that provides the right kind of protection for your family.
Get a secured free quote from multiple carriers.