Life insurance pays a sum of money upon the death of the insured to the beneficiaries. This can be used to pay for funeral costs, repay debts or provide a continuation of income for loved ones. There are two basic kinds of Life Insurance: Term Insurance and Whole Life Insurance, which is also called Cash Value Insurance.
The fundamental difference between the two kinds of insurance is that term insurance is in effect for a specified length of time stated in the insurance policy. If the insured dies during the term of the policy, the beneficiaries receive the amount of money stipulated in the policy. Whole life insurance combines a term insurance policy with a cash value component. It is in effect for the insurer’s whole life. However, because of the cash value component, you may be able to convert the policy into cash before the insured dies. There are many other complexities to purchasing life insurance. This is why you should contact Wilson Insurance Brokers. Let us take all of the guesswork out of this process for you.
Wilson Insurance Brokers, an independent insurance agency located in San Diego since 1978, can perform a free analysis of your life insurance needs and help you choose the best option from several highly rated insurance companies.
Contact us today for a free quote or to learn more about your Life Insurance needs.
Top 10 Reasons For Life Insurance
In a Recent Study, LIMRA Ranked the Top Reasons for Considering Life Insurance
- Income replacement
Proceeds from a life insurance policy can step in to pay the bills when income from the insured is lost due to death.
- Burial and other final expenses
The death of a loved one is hard enough without having to worry about your funeral costs, which can be well over $10,000.
- Mortgage protection
A family may lose their home if a life insurance death benefit is not available to help pay the mortgage.
- Lock in a low premium at a young age
Over time, as people age, premiums increase. The best time for you to buy life insurance is today.
- Transfer wealth to family
You can leave more money to your family with a life insurance policy as part of your estate.
- A tax-advantaged way to build cash value
You can realize tax advantages by utilizing policies that build cash value.
- Provide funds for college education
College is expensive. Life insurance proceeds can help ensure that college loans are paid even if you aren’t there to help.
- Meet evolving needs with a variety of product options
Needs change over a lifetime. You may want to look for a different type of policy or lower premiums to suit new life circumstances.
- Supplement employer-provided life insurance policy
Employer-provided insurance alone may not be adequate to cover your family’s
- Pay estate taxes and create estate liquidity
When an estate is inherited, certain taxes must be paid. Life insurance may step in to cover your estate costs.