Protecting What Matters Most
As we close out one year, and look toward another, we often think about our planning. Understandable not something everyone wants to think about, but this is a great time to consider your life insurance needs. How do you protect those you love, or ensure your business is able to continue if you were to prematurely pass? Life insurance protects those around you. Below are a few different options for life insurance:
WHOLE LIFE: Permanent insurance that offers lifelong coverage with a cash-value savings option. Premiums remain constant throughout the policy and a portion is invested by the company, which becomes the cash value of the policy. Whole life pays a ï¬xed amount upon death.
TERM LIFE: Has a speciﬁed coverage period but can usually be renewed or converted into a permanent policy at the end of the term.
RETURN OF PREMIUM: Like a whole life policy in that it has a speciﬁed coverage period. If at any time the purchaser dies, the beneﬁciary of the policy receives the guaranteed death beneﬁts. If the purchaser outlives the term of the policy, he or she recovers the premiums at the end of the policy.
KEY PERSON: An individual who is essential to a company’s success. This person may be a partner, owner, majority stockholder, or another individual who is crucial to the business. If an employee passes away this type of insurance provides the company with income checks to make up for the ﬁnancial loss or to use for temporary or permanent replacement costs. The employer purchases the insurance, and the employer is the beneﬁciary. If the employee dies the policy pays out to the employer.