Why Purchase Life Insurance?
Simple. Protect the ones you love.
You buy life insurance because it is the best way to protect your loved ones. Millions of people buy life insurance every year for reasons that are often difficult to express. Life insurance is a tool that protects your spouse and children from the potentially devastating financial losses that can result if you die prematurely.
Life insurance is for the living.
If anything should happen to you, the life insurance you have purchased is in place to protect and provide financial relief for those who must carry on without you. It’s about them.
Life insurance buys time and options.
Your life insurance gives your family choices by providing the benefits to help pay off debts, to help meet mortgage payments and ongoing living expenses, to help fund college educations for your children or grandchildren, and much more.
Life insurance provides cash when it’s needed most.
Your life insurance policy can deliver a specified sum of money at the exact time of need. Upon your death, your family can be assured that the amount you have chosen will be there almost immediately. And that death benefit is generally not subject to federal income taxes.
Types of Life Insurance
- A Term Life policy is temporary insurance with no cash value.
- Premiums for term insurance are inexpensive and does not change during the term.
- Usually purchased in terms of five to thirty years.
- Once the term ends, you may have an option to renew at a premium based on your current age.
- A Whole Life policy is permanent insurance that pays a fixed amount upon death of the insured.
- A major feature of Whole Life is growth of cash value.
- Cash value builds tax-deferred annually.
- You may borrow against the cash value income tax free.
The premium remains constant throughout the life of the policy.
- Final Expense plans are Whole Life policies that have simplified underwriting.
- The main purpose of the plan is to provide a death benefit to pay for funeral expenses.
- The face amount of the policy ranges between $5,000 to $30,000.
- Simplified underwriting has limited health questions making it easier to obtain a policy.
- Final Expense plans typically have a minimum age requirement, such as 40 to 45.
- Universal Life insurance combines the low-cost protection of term life insurance with the savings element of whole life insurance, giving you the protection of a cash value buildup.
- Universal Life is a permanent life insurance with customizable options.
- The premiums can be reviewed and altered as a policyholder’s circumstances change, which could change the cash value and possibly the death benefit.
Other Life Insurance Options
Long Term Care Rider
- Long Term Care riders may be added to some Life insurance policies.
- The policy pays a determined, flat amount monthly up to the total death benefit if the insured needs to move to a Long-Term Care Facility.
- This is an economical option for people who cannot afford the premium on a conventional Long-Term Care Policy.
If you are having trouble with acceptance you may qualify for a type of insurance called “guaranteed issue”. With Guaranteed issue coverage, it is exactly what it sounds like; no health questions are asked, and your acceptance is assured.
With over 60 years of experience, putting together a personal insurance package is our specialty. Let 5 Star Insurance Group, LLC take care of what we know best…Insurance.