Life & Health Insurance

Introduction to Life Insurance

Health Insurance Life Insurance is most commonly used to financially protect your family from the premature death of you and/or your spouse. Unfortunately, it's probably the least favorite thing to plan for. And, as a result, adequate planning is often put off until it's too late.

Although it may sound simple, there are many things to consider. There are many ways to protect your family with life insurance. So, consulting with a Life Insurance Professional can be vital!

Not Only For Family Protection
Life insurance planning is not only for those who support a family. There are several reasons for thorough life insurance planning. For example, have you recently purchased a new home? Have you recently been married? Have you made career changes? Other key purposes of life insurance include retirement and estate planning.

Life Insurance Proceeds & Taxes
Many people don't realize that even though life insurance proceeds are paid income tax-free to the beneficiary, there's a good chance the proceeds will be included in the value of your estate which may be taxed.

I Have Life Insurance Through Work
People often make the mistake of assuming their employer-provided life insurance is adequate. However, employer-provided life insurance is typically only equal to one year's salary...far from enough for the family provider to protect his/her family adequately, and not enough for the average single person to repay outstanding debts – often leaving parents and siblings dealing with such bills.

Major Types of Life Insurance

If insurance terms leave you dazed and confused, here's a quick cheat sheet for four major types of policies. Keep in mind that definitions may vary slightly from company to company and from state to state:

Term Insurance -- The simplest form of insurance. You purchase coverage for a specific price for a specified period. If you die during that time, your beneficiary receives the value of the policy. There is no investment component.

Whole Life -- Similar to term, but you purchase the policy to cover your "whole life" not just a set period. Premiums remain level throughout the life of the policy, and the company invests at least a portion of your premiums. Many companies will offer "a relatively low guaranteed rate of return," but in reality pay at a rate in excess of the guarantee.

Universal Life -- You decide how much you want to put in over and above a minimum premium. The company chooses the investment vehicle, which is generally restricted to bonds and mortgages. The investment and the returns go into a cash-value account, which you can use against premiums or allow to build. With some policies, sometimes called Type I or Type A, the cash account goes toward the face value of the policy on the death of the policyholder. With a second variety, sometimes called Type II or Type B, the beneficiary receives the face value of the policy plus all or most of the cash account. While Type II is meant to provide a partial hedge against inflation, it demands higher premiums as you get older than Type I.
A variation of a universal policy, often called universal variable life, allows policyholders to choose investment vehicles.

Variable Life -- With a variable policy, there is usually a wider selection of investment products, including stock funds. As with a universal policy, returns on investments can offset the cost of premiums or build in the account. And depending on the type of policy, the beneficiaries will either receive the face value of the policy or the face value plus all or part of the cash account.

Please Note: These insurance coverage descriptions are intended only as a guideline. All terms and coverages are defined solely by your policy.

Life, Accident & Financial Services

Lincoln Benefit Life
Prudential
American Heritage

Health Insurance Companies

Humana
United Healthcare