Family life insurance is an important part of any financial plan. It can provide security for the people you love when you are no longer around. The money your dependents will receive, “the death benefit,” is usually federally tax-free and can be used by your beneficiaries for a variety of things, such as burial costs and estate taxes, providing a lifetime income to a loved one, or ensuring that your children have money for college. Plus, life insurance can help ensure that your loved ones are not burdened with debt, or forced to sell assets to pay outstanding bills or taxes.
If something happened to you, would the financial future of your loved ones be protected? Help ease your mind with coverage that you and your family can rely on. As an independent insurance consultant/broker, Shelton Insurance has relationships with a vast scope of insurance markets which enables our office to evaluate insurance products that are perfect for what you are looking for and ultimately, what you and your family need.
You may benefit from a family life insurance policy if you need higher limits of insurance than are available through your group plan or want to leave a legacy to your children, grandchildren, institutions or charities you support. You may also benefit if you cannot qualify for group life insurance for health or other reasons, or if you need a permanent death benefit to protect a special needs loved one or to assist in estate planning.
There are two main types of family life insurance to consider; Term Life Insurance and Permanent Life Insurance.
With term life insurance, you pay premiums for a specified term (usually 20 or 30 years), and if you die within that term, the insurer pays your survivors a benefit. But term insurance is like car insurance: if you stop paying premiums, you lose the insurance.
With permanent life insurance, your insurance is valid as long as you’re paying premiums. In addition, some of the money you pay in premiums accumulates as a cash value. You can use this cash value to save for retirement, or even take loans against it throughout your life.
Within permanent life insurance, you can choose between whole life insurance and universal life insurance. The big difference between whole and universal is that whole life insurance premiums are fixed for life while universal life insurance allows you to adjust the premiums and death benefit as you go.
With whole life insurance, after a number of years some of the money you’ve paid is yours to keep—even if you stop paying premiums. This is called the policy’s cash value. Nobody likes “throwing money away” on life insurance, so the prospect of combining life insurance policies with a way to save tax-deferred money for retirement is attractive.
The key to understanding a whole life policy is the internal rate of return— that’s the return on the policy after taking all the fees out. As seasoned insurance pros, we can help you understand what that return would be and create a family life insurance quote to meet your needs. We also specialize in family life insurance for seniors.
Ready to get family life insurance? At Shelton Insurance, we can thoroughly explain all the benefits of term and permanent life insurance plans, just ask! Call us at (831) 637-8941.