Term Life Insurance

Term insurance is a Temporary Insurance which covers your risks for a shorter period of time .Under Term Life insurance, the insurance company promises to pay death benefit if you pass away within the period specified in the policy. With term , you sign a contract for a specific amount of time and pay premiums for that length of the contract .When the contract ends , so does your coverage. Premiums in Term Life are usually not high and depend on the age, sex, health, smoking habits and coverage of the insured.

Permanent Insurance

Permanent Insurance covers you for life (as long as you pay the premiums ).Your risks are covered for a longer period of time . The main advantage of purchasing a permanent life insurance is that you can build up some cash values in permanent policies ;upon cancellation of the policy you can be rewarded with cash.

Permanent insurance is a good choice for you if you can comfortably afford the premiums, and if you want to ensure that you have a life insurance policy in place for your entire lifetime. In addition, whole life insurance may be used as a part of your estate planning.

Term Insurance v/s Permanent Insurance 

Universal Life Insurance

Universal Life Insurance is like buying a permanent insurance and investing money at the same time in the same form of insurance. In Universal Life, the premiums you pay would go into a holding account and the insurance company would invest that money in other investments or funds. This money is tax free and you can also take a loan against this amount. The company includes in your contract a minimal guaranteed interest rate on the money in your account. The investment inside the policy grows tax-deferred, and can potentially be tax-free.

The advantage of Universal Life is that if you have surplus savings, you need not pay the premiums. It is important not to minimum-fund your Universal Life Insurance policy in the initial years i.e., in the first seven years. When you overfund the policy, the savings accumulated will be used as your premiums.

However, if you stop or reduce your premiums and the savings accumulation gets used up, the policy might lapse and your life insurance coverage could end. Hence, there always needs to be sufficient money in the account to take care of the premium payments. If you are looking for insurance coverage along with investment, then Universal Life could be the best option.

Advantages

• You can increase or decrease the face value of insurance
• You can add additional lives insured (subject to their insurability)
• You can substitute one life insured for another (subject to their insurability)
• You change the amount, timing, and frequency of deposits
• Universal life insurance is more flexible than any other product.
• The cash accumulated in a universal life insurance account allows for greater wealth accumulation than taxed investments. (Conditions apply)

Disadvantage 

• It is expensive as compared to other insurance policies.

Is it worth it to purchase Term Life Insurance?

Are you contemplating if purchasing a Term Life Insurance policy is worth it? The answer is Yes. It is an affordable solution to protect your dear ones financially. A crucial financial safety net for your beneficiaries is that if you die suddenly, the financial burden does not fall on them. To find out more about Term Life Insurance, please do not hesitate to contact the team atLiberty Life Financials today.

Who requires Term Life Insurance?

As mentioned earlier, if you are the sole earner of your family, then you must purchase insurance coverage. Even if you don’t have dependents that rely on you financially, the funds can be used to cover your funeral expenses or even pay off your outstanding debts. A Licensed Experienced Financial Advisor is the best way to identify if you require Term Life Insurance or not or an online calculator. It will take into account your income, age, and family structure. Additionally, it will also tell if you need Term Life Insurance or not. A Term Life Insurance can help:

• Replace lost income and pay off certain expenses like rent or mortgage
• Pay off outstanding debts
• Take care of your children’s education
• Pay for your funeral and other final expenses
• Fund the post-secondary education cost of your children
• Pay off any unpaid medical bills or taxes
• Used and inheritance fund

Don’t think; act now and purchase Term Life Insurance for a better tomorrow.

Purchasing Term Life Insurance can sometimes feel like one of the items on your checklist. It is something that you know that needs to be done over time. But certain expenses or setbacks make you feel that there’s never a right time to do it. Fortunately, in recent times purchasing a Term Life Insurance policy is way easier, including it being affordable. Buying Term Life Insurance does not require one to scan documents or print out several pages. Now, Advisor & you can sit together and just apply online for Term Life Insurance and find out if you’re approved instantly.

In addition to providing some security for the uncertain future, should your policy need to be paid out to your designated beneficiaries the payout amount is free of income tax for your beneficiaries?

Term Life Insurance is worth it!

Buying a Term Life Insurance policy crosses one item on your to-do list, and most importantly, it gives you complete peace of mind. Unlike renovating your home, buying a Term Life Insurance policy provides your loved ones with a financial safety net based on your selected coverage term.

It can either be for a few years or several years. So, the million-dollar question? Is it worth it? While we cannot place a monetary value on peace of mind, we can create a financial barrier for our family, which is truly priceless. If you think about it, a Term Life Insurance plan costs a little more than your monthly TV streaming service.

Additionally, it does impact your monthly budget too much, but it can have a much bigger impact overall, knowing that your family’s financial needs are well taken care of.

If you need help understanding Term Life Insurance or are looking to apply, please do not hesitate to reach out to the experts atLiberty Life Financials today. Our insurance brokers will be more than happy to address any queries that you may have.