What a turbulent few years it has been. The employment market is still a little weak and home prices continue to fall. Gas prices are high and consumer confidence is low. Through it all, one source of financial security that has remained strong is life insurance.
What is life insurance?
In the event of a tragedy, life insurance proceeds can help pay the bills, continue a family business, finance future needs like a children’s education, protect a spouse’s retirement plans, and much more.
What are the different types?
As the name implies, term insurance provides protection for a specific period of time and generally pays a benefit only if you die during the “term.” Term periods typically range from one year to 30 years, with 20 years being the most common term. One of the biggest advantages of term insurance is its lower initial cost in comparison to permanent insurance. Why is it cheaper when initially purchased? Because with term insurance, you’re generally just paying for the death benefit, the lump sum payment your beneficiaries will receive if you die during the term of the policy. With most permanent policies, your premiums help fund the death benefit and can accumulate cash value.
Permanent insurance provides lifelong protection, and the ability to accumulate cash value on a tax-deferred basis. Unlike term insurance, a permanent insurance policy will remain in force for as long as you continue to pay your premiums. Because these policies are designed and priced for you to keep over a long period of time, this may be the wrong type of insurance for you if you don’t have a long-term need for life insurance coverage.
If you would like more information on life insurance, please call 353-2800 and talk with Brenda Arteman or Paul Flanagan at American Trust Insurance.
Information courtesy of www.lifehappens.org