Who needs life insurance?
If you do not have anyone who depends on you for financial support, then life insurance probably is not necessary. If you have dependents who rely on your
income, a life insurance policy can help manage debts and other bills after you die.
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Types of Life Insurance Policies offered by All Aboard Benefits
There are a variety of types of life insurance, providing important benefits for your personal or business financial plan.
Term Life Insurance
Term life insurance policies are typically less expensive and less complicated than their cash value counterparts.
- Coverage is purchased for a specific term (from one to 20 years) or until the insured person reaches a certain age
- Cost increases as you get older
- Usually does not include a savings component
- Can be converted to a permanent life insurance policy of equal value without providing health or medical history (some age restrictions may apply).
- Policy can be extended for additional terms, regardless of health
- Premiums generally increase with each renewal term and can be extremely high for people past middle age
- Benefits typically paid out in one of three ways:
- Level term coverage
- Decreasing term coverage
- Increasing term coverage
Cash Value Life Insurance
Cash value life insurance policies typically cost more, but provide additional options and benefits in addition to the death benefit.
- Premiums are typically higher than term life policies, but generally increase at a slower rate.
- Policy provides a savings component that grows over time and can be withdrawn, invested or borrowed against (surrender charges, applicable taxes, and other fees may apply)
- Beneficiaries may receive death benefit or death benefit plus any remaining cash value
- Types of cash value life insurance policies:
- Whole life: remains in force for your entire life or until policy is cashed in, provided premiums are paid
- Flexible premium universal life: allows you to choose the amount of coverage, premium amount, and the cash value you build
- Types of cash value life insurance policies:
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Uses for Life Insurance
Life insurance can help solve personal or business financial needs such as:
- Create an estate
- Pay death taxes and other estate settlement costs
- Fund a business transfer
- College fund for children or grandchildren
- Pay off a home mortgage
- Protect a business from the loss of a key employee
- Supplement retirement funds
- Replace a charitable gift
- Pay off loans
- Equalize inheritances
- Accelerated death benefits
- Pension maximization
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