Buying life insurance is an act of love. Facing the possibility of an untimely death by purchasing life insurance for those that rely on you and your income can minimize the financial havoc your family could endure. By purchasing adequate life insurance, you are assured that house payments will be paid and college dreams will be realized.
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We offer the best life insurance products and pricing from financially strong carriers. Below are some of the types of products we offer.
Term life policies are usually the least expensive method to purchase a needed death benefit and the most common type of policy issued. The “term” refers to the number of years that the premium is level. Common term policies are issued with level premiums of 10, 15, 20, 25, or 30 years and the longer the level premium term, the more expensive. Most term life policies are guaranteed renewable and non-cancellable to age 95 as long as premiums are paid. However, less than 1% of all term policies actually pays a death benefit. This doesn’t mean that insurers are scamming people or refusing to pay. It means that the vast majority of policy holders outlive the level term period. Once the level term has expired, the policy premium increases each year according to the terms and conditions of the policy. If an insured still requires a death benefit after the level premium term has expired and they remain healthy enough to qualify for a new term life policy, more than likely they can apply for a new policy with another level term premium at a far lower rate.
PERMANENT LIFE (Universal Life/Variable Life/Whole life)
Permanent insurance typically provides “lifetime coverage”, although it can be designed to provide coverage to a specific age, such as 85 or 90. Generally, these types of policies do not expire due to a permanent policy’s “savings” or cash value component. Because of the savings or cash value component, premiums are much higher than traditional term insurance. When you pay a permanent life insurance policy premium, a portion of the premium pays for the mortality cost of the death benefit purchased and the remaining portion is invested by the insurance company which generates accrued interest, building up the savings or cash value. This cash value is the policy owner’s “asset” and can be borrowed as a policy holder loan or provide tax free income later in life. It is important to analyze one’s needs, both pre and post death before purchasing a permanent type policy.
SECOND TO DIE
Second to Die life insurance is also known as estate saver life insurance. This type of permanent life insurance is most commonly used to provide coverage for estate tax obligations. When a husband or wife predeceases one or the other, current tax law provides for an unlimited marital exemption. All assets of the deceased spouse transfer to the surviving spouse with no tax consequences. However, at the surviving spouse’s death, a tax burden can occur depending on the size of an estate. Proceeds from a Second to Die life insurance policy can provide the cash needed to pay estate taxes and keeps the one’s heirs from having to “sell the farm” to pay the estate taxes.
OTHER AREAS OF EXPERTISE
The most cost-saving method of purchasing insurance for you is to package all your insurance together with the same company and agent, when possible. See how we can enhance your other insurance needs below.
© 2019 SHEWCHUCK INSURANCE AGENCY, INC.
This website provides only a general description of Shewchuck Insurance Agency and is not a statement of contract. Not all features or discounts described on this website are available in every state or from every carrier and total savings and premiums may vary. We offer coverage from selected standard market carriers.