While many insurance salespeople make life insurance out to be complicated, life insurance is a straightforward product. Life insurance companies insure very large numbers of people and as a result, they can calculate life expectancy with reasonable accuracy. In addition, they can spread the cost of the insurance coverage over their pool of policyholders and offer relatively low premiums.

There are three primary types of life insurance policies: term, whole life and universal life.

Term Life Insurance

Term life insurance covers you for a set number of years, typically 10, 20 or 30 years. Term insurance premiums are the lowest because the insurance company pays the death benefit only if you die during the term covered in the contract, in other words before your policy expires. Term insurance is beneficial because the cost is lower than whole and universal life. Term insurance premiums increase over time; this helps you meet your budget early on. You may have to prove your medical insurability to obtain coverage. Most term policies also include an option to convert your policy to whole or universal life insurance during the contract term.

Whole Life Insurance

Whole life insurance is permanent coverage with fixed premiums. Your policy includes a death benefit and you build up cash value. In the short run, whole life insurance is the most expensive coverage. You can access the cash value through loans or withdrawals, if needed, during the insured's lifetime. You can also convert your cash buildup into a supplemental retirement plan if the need for the insurance is reduced in later years.

Universal Life Insurance

Universal life is another form of permanent insurance that provides a death benefit, the potential to build cash value on a tax deferred basis and the ability to adjust premiums depending on the policy. Today's universal life policies enable you to create a "Guaranteed Universal Life" contract, so that you can lock in your costs and benefits, regardless of the carrier's loss experience over time or the interest rate environment.

 

To learn more or obtain a free quote, contact A. Logan

 

Group and "Key Man"

 

A. Logan offers group and key man life insurance.

Our group policies protect your employees and their families. Some of our clients provide this coverage to their employees and others offer this as an option where each employee can elect to purchase coverage under the company's group policy.

Key man life insurance policies pay your company in the event the insured person, typically the CEO or other members of senior management, die. The proceeds provide funds to the company in order to hire new employees or purchase the decceased person's ownership stake in the comapny. Key man life insurance can be a valuable estate planning tool.

Typically, bueinsses would carry term insurance on key executives. Term life insurance covers the company for the death of the insured for a set number of years, typically 10, 20 or 30 years. Term insurance premiums are the lowest because the insurance company pays the death benefit only if the insured person dies during the term covered in the contract, in other words before the policy expires. Term insurance is beneficial because the cost is relatively low. The comapny benefits from coverage against the risk the executive dies.  Term insurance premiums increase over time; this helps your company maintain its working capital.

To learn more or obtain a free quote, contact A. Logan