Merry Christmas!

September is life insurance month

What is Life Insurance?

Life Insurance protects those who depend on your paycheck. If you were to die prematurely, life insurance provides your dependents with ongoing income to replace yours until (or unless) they can live comfortably without it. It can also provide a timely emergency fund for medical, legal and funeral costs should family savings not be adequate to cover them.

Why do I need Life Insurance?

No one likes to think about losing a loved one, but it is our duty to protect those we love even if we are no longer there. Most people look at Life Insurance as a luxury but if you have a family, what is going to happen to them if you prematurely pass away? Who is going to replace that income gap? Life Insurance is not for you, it is for those you leave behind.

Types of Life Insurance:

• TERM LIFE: Covers the insured for a limited amount of time. Generally offers the most amount of coverage for the least amount of money
• WHOLE LIFE: Also known as permanent insurance. Provides insurance for life guaranteed at death as long as you pay your premiums.
• UNIVERSAL LIFE: A flexible option that lets you vary your premium payments. After the first premium you can usually make payments at any time. If you have extra money, you can pay more. If you cannot afford to make a payment, you can skip it or pay less.

What is a Rider?

A rider allows the insured to customize their plan to better fit thier needs. It is a clause / provision in the policy that would provide added supplemental protection at an additional cost.

Types of Riders:

• ACCIDENTAL DEATH BENEFIT: Allows for added benefit to be paid out if the insured’s death was accidental. This rider can double or triple the face value of the policy without having to pay 2x/3x as much in premiums.
• WAIVER OF PREMIUM: A waiver that will allow the policy to remain active even if the insured can no longer work to pay the premiums due to disability.
• TERM CONVERSION RIDER: This rider lets you convert term life into whole life without going through a medical exam.
• ACCELERATED DEATH BENEFIT: The rider lets you collect a portion od the policy’s death benefit if you become terminally ill with a short life expectancy, such as one year.
• CHILDREN’S LIFE: This rider provides coverage for final expenses in case the unthinkable happens and you lose a child. It will provide coverage to pay for the funeral expenses.
• GUARANTEED INSURABILITY: This rider lets you purchase additional life insurance coverage at a later date without undergoing a medical exam or providing any evidence about your insurability.