Life Insurance can take care of your dependents should something happen to you. Bill Proctor & Associates Insurance Services has friendly agents who can help you get the life insurance you need to make sure your family is provided for. An independent agent can compare policies from well-established, dependable companies and get a great rate for your coverage. There are actually three different kinds of life insurance from which to choose.
Term Life Insurance
Term life insurance lasts for exactly that – the term of the policy. This is the insurance policy you get when you’re young, healthy, and have little kids to protect. A term policy is issued for a period of years – usually 10 to 40. You choose the death benefit and to whom they will be paid, and pay your premium until the term of the policy is complete. At that time, you have the option of renewing the policy, or purchasing a new one. Term life insurance is less expensive than whole life, making it a great option for people with lower incomes or those just starting out.
The premiums for life insurance policies usually are available in 3 different types:
- A level premium stays the same for the duration of the term. So, if you’re paying $15 a month for a $100,000 policy, it will stay that amount for the duration of the policy term.
- An increasing premium on your life insurance will start off small. As the years go by, the monthly premium will increase every few years, until the term of coverage is over. This is based on the premise that you’ll make more money as the years go by. The increased scale of payments is due to projected raises and promotions, or to the fact that your dependents will have probably moved out on their own.
- A decreasing premium starts at its highest rate, and drops over the years of the term of the policy. This type of policy is great for those who purchase the policy at the peak of their earning capacity, and are looking toward part-time work or retirement.
Whole Life Insurance
Whole life insurance lasts for your whole life. It also builds up cash value. This is the type of policy that builds cash value. Typically, the policy is set for about a 20 year payoff. These policies are more expensive than term life, but you get your money back at the end, if you choose to. Once you have finished your premium payments, your insurance policy is ripe, and it will stay active until time to pay out your death benefits. However, it also acts as a savings account of a sort. If, at any point, you wish to withdraw the money, you can cancel your insurance policy and take a cash refund. There are penalties, though, so you won’t get all of the money back, unless you wait until the policy is paid off, first.
Universal Life Insurance (UL)
Universal life insurance was created to provide more flexibility than whole life insurance by allowing the policy owner to shift money between the insurance and savings components of the policy. Premiums, which are variable, are broken down by the insurance company into insurance and savings, allowing the policy owner to make adjustments based on their individual circumstances. For example, if the savings portion is earning a low return, it can be used instead of external funds to pay the premiums. Unlike whole life insurance, universal life allows the cash value of investments to grow at a variable rate that is adjusted monthly.
For all your life insurance needs, Bill Proctor & Associates Insurance Services will advise you on the best course of action. We serve the entire Coachella Valley, including Palm Springs, Desert Hot Springs, Palm Desert, Rancho Mirage, Thousand Palms, Indio, La Quinta, Coachella, Thermal, Banning, Beaumont, Yucca Valley, 29 Palms and beyond…