Life insurance primarily branches into two types: Permanent and Term. The choice between them is influenced by your desired coverage duration, the primary intent behind the insurance, and your budget. Here’s a detailed insight into each to aid your decision-making process:
Think of this as a long-term safety net: it lasts your whole life and promises a payout to your loved ones as long as you keep up with the payments.
Why Choose Permanent Life Insurance?
Real world Scenario: Meet Linda, a single mom in her 40s with two kids. She’s not just worried about immediate expenses like college fees and her mortgage but also the rising costs of future needs, such as potential medical bills and other expenses. Linda seeks lasting security, so she chooses permanent life insurance. It’s pricier upfront, but it’s like having a safety net and a savings account in one. Years later, as expenses mount, she can rely on her insurance’s growing value for long-term peace of mind.
Unlike permanent life insurance, term life insurance provides coverage for a specified period—usually 10, 20, or 30 years. If you pass away within this term, your beneficiaries receive a death benefit. If the term expires and you’re still alive, the policy simply ends.
Why Choose Term Life Insurance?
Real World Scenario: Meet Tom, Tom’s a dad in his 30s, working two jobs to make ends meet. With a young family and a tight budget, he’s looking for a simple, affordable way to make sure his family’s covered if anything happens to him. He goes for term life insurance – it fits his budget and covers him for the next 20 years, the time he thinks his family needs protection the most.
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Who It’s For: This policy is particularly suited for those who desire a fixed premium and guaranteed growth of cash value. It’s a good fit if you’re looking for both a long-term financial safety net and a potential source of loans or cash withdrawals.
Who It’s For: This policy is ideal for those who want lifetime coverage but also desire some level of flexibility to adjust premiums and death benefits according to their changing financial situation.
You don’t have to go it alone when planning for your family’s financial security. At Denesha Insurance Agency, we get it. You’re not just looking for any insurance; you’re looking for peace of mind, financial stability, and a great investment for you and your loved ones.
Your family’s needs—your children’s schooling, keeping a roof over your heads, or just making sure the bills get paid—are our top priority. We’re there for you, guiding you every step of the way, like a trusted friend who’s been there before.
Yes, you can name multiple beneficiaries and even specify the percentage of the death benefit each should receive.
Generally, life insurance payouts are not subject to income tax, making them a tax-efficient way of passing wealth to the next generation or securing your family’s financial future.
The cash value in a permanent life insurance policy grows over time and can be used for loans, withdrawals, or even to pay premiums in some cases.
Most types of life insurance, especially Universal Life, offer some flexibility to adjust premiums and coverage amounts. However, modifications may be subject to underwriting and other fees.
Once a claim is filed and approved, beneficiaries usually receive the death benefit within 30 to 60 days.
Still have unanswered questions or need personalized guidance?
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