Life Insurance

Life InsuranceLife Insurance enables you to provide financial care for the family you leave behind when you die. Life Insurance will be most helpful to your dependent family members, if you pass away when your children are still young, your life insurance payout will financially support them at an expensive time.  In addition life insurance is a good idea to have to pay off any of your debts. (Credit card debts, mortgages, car loans, estate taxes, checks funding your children’s education, etc.) Finally, life insurance can be used for anything your beneficiaries chose.

Life insurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual’s or individuals’ death or other event, such as terminal illness or critical illness .

Here is a list of the three types of Life Insurance.  Beacon can help you pick the best plan for you based on your financial portfolio and current situation.

Term Life Insurance

Term life insurance policies begin with low premiums during the initial stages of the policy and these premiums increase steadily as the insured grows older. There is no cash build-up in a term policy and, accordingly, the death benefit will not increase.

Whole Life Insurance

Whole Life Insurance is a form of Permanent Insurance which covers you for your entire life, does not have to be renewed and does not expire provided you regularly pay premiums. The premiums for this type of policy remain level throughout the life of the insured. The amount of premiums in early years of the policy is considerably higher than in Term Life policies, which result in developing cash values. The cash value increases every year. You can take loans or withdrawals; however it will reduce the death benefit. Whole Life Insurance type is helpful to cover needs that do not tend to diminish with time, like paying taxes.

Variable Life Insurance

Variable life insurance offers a choice of death benefit options and a potential to accumulate non-guaranteed tax-deferred cash value that fluctuates based on the performance of underlying investment options that you choose. Variable life insurance is also a form of permanent life insurance. The premiums paid for variable life can be used in a wide range of investments including stocks. Extra money received from these investments can add to the value of what the beneficiaries will receive. This type of insurance does provide guaranteed benefits similar to whole life but comes with higher risks.