Life Insurance Information
With the various types of insurance products available and multiple carriers to choose from, ALB offers our experience and knowhow to find the right type of coverage based on the clients needs. In an ever changing environment where options and premiums fluctuate constantly, we have the tools to find the least expensive term products as well as running complicated Indexed Universal Life quotes for retirement income.
What is life insurance?
A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death.
Typically, life insurance is chosen based on the needs and goals of the owner. Term life insurance generally provides protection for a set period of time, while permanent insurance, such as whole and universal life, provides lifetime coverage. It's important to note that death benefits from all types of life insurance are generally income tax-free.1
What are the different life insurance types?
Term life insurance
Term life insurance is designed to provide financial protection for a specific period of time, such as 10 or 20 years. With traditional term insurance, the premium payment amount stays the same for the coverage period you select. After that period, policies may offer continued coverage, usually at a substantially higher premium payment rate. Term life insurance is generally less expensive than permanent life insurance.
Needs it helps meet: Term life insurance proceeds can be used to replace lost potential income during working years. This can provide a safety net for your beneficiaries and can also help ensure the family's financial goals will still be met—goals like paying off a mortgage, keeping a business running, and paying for college.
It's important to note that, although term life can be used to replace lost potential income, life insurance benefits are paid at one time in a lump sum, not in regular payments like paychecks.
Universal life insurance
Universal life insurance is a type of permanent life insurance designed to provide lifetime coverage. Unlike whole life insurance, universal life insurance policies are flexible and may allow you to raise or lower your premium payment or coverage amounts throughout your lifetime. Additionally, due to its lifetime coverage, universal life typically has higher premium payments than term.
Needs it helps meet: Universal life insurance is most often used as part of a flexible estate planning strategy to help preserve wealth to be transferred to beneficiaries. Another common use is long term income replacement, where the need extends beyond working years. Some universal life insurance product designs focus on providing both death benefit coverage and building cash value while others focus on providing guaranteed death benefit coverage.
Whole life insurance
Whole life insurance is a type of permanent life insurance designed to provide lifetime coverage. Because of the lifetime coverage period, whole life usually has higher premium payments than term life. Policy premium payments are typically fixed, and, unlike term, whole life has a cash value, which functions as a savings component and may accumulate tax-deferred over time.
Needs it helps meet: Whole life can be used as an estate planning tool to help preserve the wealth you plan to transfer to your beneficiaries.
Additional Ancillary Products
Long Term Care
Long Term Care Insurance, compared to other vehicles, is the best way to ensure individuals can receive quality care at home and remain independent at the best value, while at the same time freeing your family from the responsibility of caring for you. Benefits such as Care Coordination, built in cash options, and premiums that are tax free, provide flexibility throughout the progression of care so you don't have to worry about liquidating assets to pay for care.
Critical Illness insurance pays a 100% benefit amount directly to your client upon diagnosis of a covered condition. These benefits can be used to pay for lost income while away from work, living expenses, paying health care deductibles and hiring home health care or child care services. Examples of Critical Illness may include:
- Heart Attack
- Life-Threatening Cancer
- Alzheimer's disease
- Major Organ Transplant