The benefit of life insurance is that you are leaving your beneficiary a lump sum of tax free money. This money can take the place of lost income in the event of your death. Leaving behind a lump sum of tax-free money is one of the many ways you can provide for your family and loved ones.
These funds can be used to fund your children’s education, pay off mortgage and credit card debt and even afford you the opportunity to be philanthropic leaving money to various charities in your name.
There are many types and hybrids of life insurance policies available. Arena Insurance Brokers can quote you on term life insurance, universal life insurance and whole life insurance. In today’s marketplace there are hybrids of all three of the aforementioned types of policies which your Arena Broker can discuss with you. You also have an option of purchasing annuities.
You can do your own research and utilize the services of a life insurance agent to assist you in choosing the best type of insurance policy for you. Insurance policies are based on how long you would like the insurance to last. We call this the term. Then you must decide the amount of coverage you would like. This is the amount of money that in the event of your death; this amount of money will be paid tax-free to your beneficiary. We call this the death benefit.
Term Life Insurance expires after a set period of time.
Term life insurance is for a set period of time. For example you can choose how long you would like life insurance coverage for example, 10, 20 or 30 years. We call this the term length, term life insurance has a level premium. A level premium means that the premium or your cost is the same in month 1 as in the last month in year 20. You can choose to pay for your insurance policy monthly, quarterly, semi-annually or annually. The amount you pay will remain the same and never change in a term life insurance policy. If you pay monthly, quarterly, semi-annually or annually your premium (amount you pay) will remain the same for the life of the policy. It will never increase or decrease.
Whole Life Insurance
We call whole life insurance permanent insurance. Unlike term life insurance, this type of insurance policy does not expire, it is for your entire life or hence the name, whole life. There are many variables to understand with whole life for example your premium will change and possible accumulate cash value over time. In addition the death benefits can be flexible as well. Contact Arena to start a discussion about your life insurance needs.
Universal Life Insurance
This type of insurance offers flexible premiums and coverage amounts (death benefit). Insurance companies have now blended many components of insurance policies to have a variety of outcomes on your legacy. Contact your Arena agent to start a discussion about your life insurance needs.
Term, Whole & Universal Life Insurance
Protecting your legacy