Term life usually has the lowest premiums compared to other kinds of policies. This makes it a great choice for young parents on a budget! In general, rates are lowest for young and healthy people. The longer you wait to lock in life insurance, the more it will cost you. Or you may find that your health has gotten so poor that insurance companies refuse to cover you! So don’t risk being locked out of life insurance. Come and see us now even if you don’t have children yet.
Term life is the essence of life insurance. Simply, in return for your premium, the insurance company promises to pay your beneficiaries if you pass away while the policy is in force.
The policy may be renewable each year up until you reach a certain age, for example, 65 years old, or for up to 30 years ("30 Year Term"), regardless of whether your health gets worse over that period (the period is known as the "term"). The premiums can be the same each year, called “level premium,” or go up slightly each year according to a pre-determined schedule. Some policies even allow for a return of some of the premium if you’re still alive at the end of the term!
There are many kinds of individual life policies. Below we describe some of the more popular ones. In addition, riders are usually available to allow you to customize the policy even further.
Trust Beacon to guide you in selecting a suitable policy, whether you are interested in Life, Disability, Auto, Homeowner's, Annuities, or Business Insurance.
Let's Talk! (908) 236-7700
Call us today at (908) 236-7700 and let Beacon Insurance Agency guide you in selecting a Term or Universal Life Insurance policy.
If you want permanent protection, that is, coverage until age 100 or older, consider Universal Life. This kind of policy has all the benefits of term life plus it builds up cash value. Cash value is additional money you contribute into the policy (through larger premiums) and it typically earns interest.
Cash value works for you in various ways. For example, if there is enough cash value, it can be applied to all of your premium payments, or just part of the premium, thereby reducing the annual out-of-pocket cost of the policy to you. You can also borrow most of the cash value; the insurance company will lend you money against the cash value in your policy so it's available to you if you need to spend it at any time. Keep in mind, however, that you will be charged interest for the loan. You can repay the loan when your finances improve, or it can be deducted from the death benefit payment to your beneficiaries when you pass away. Or you can simply withdraw money from the cash value and spend it any way you choose, whether now or in your retirement!
Please be aware that withdrawals may be taxable as income, but only to the extent that they represent gains that exceed your basis in the policy. Your basis is the portion of your premiums applied to build up the cash value. Always check with your CPA or tax attorney. Beacon Insurance Agency does not give tax or legal advice.
With Universal Life policies, you have some choices on how the insurance company determines the interest that they will credit on your cash value so that it grows prudently. You can choose a fixed interest rate that the insurance company offers. Or you can choose a minimum guaranteed fixed interest rate plus any additional excess interest rate which the company may periodically declare (let's call it a “kicker” rate for simplicity).
This kicker rate shows up or increases when the stock market performs well in the case of Equity Indexed Universal Life Insurance policies. Some of these policies give you a choice of which stock index your kicker will be influenced by (for example S&P 500). But the kicker rate is never less than 0% so you don't lose money due to the stock market going down. That's because your cash value is never invested in the stock market; instead the insurance company pays an interest rate that approximates the percent gain in some equities, minus certain costs. It's possible that your cash value could go down if the kicker isn't high enough to compensate for those costs, which are there regardless of the kicker's performance.
You can rely on us to make full disclosure when you come in to meet with us and we make a recommendation about a specific policy that we feel is suitable for your needs. We will take the time to ensure you understand the risks and costs involved, and we won't mumble!
The interesting thing about Equity Indexed Universal life policies is that if the stock market goes up (and from time to time it actually has!) your cash value may grow faster than it would in a bank account. (Disclaimer: Cash value of a life insurance policy is not FDIC insured.)
Depending on the value of the death benefit you apply for, the insurance company may require you to undergo a medical exam by a licensed nurse or doctor prior to issuing you a policy. The insurer pays for the exam. In the event that a medical exam is not required, you will still have to answer questions about your health which the underwriter will consider in deciding whether to issue you a policy. In both cases, your confidentiality is protected by both state and Federal laws.
Mutual of Omaha
Provide for your loved ones even if you can’t be there to watch them grow up......
You work hard earning an income to put a roof over their heads and good food on the table. But where will your family live if you’re no longer around? With the right amount of life insurance, you can confidently answer, “At home!”
Life insurance allows you to help your spouse and children navigate their world safely on their own. Even if you didn't have time to save up a significant amount for their journeys, buying sufficient life insurance is your plan to continue providing for your children until they are old enough to provide for themselves.
Beacon Insurance Agency will be glad to sit down with you and help you plan effectively for their future wellbeing. We can help you get an affordable policy from any of the following great companies: