Life Insurance
Taking care of the people we love is often times the reason we work so hard. Will the people in your life be able to get by without you? Let us help you explore the different types of life insurance available.
There are many different types of life insurance at different costs, with different specific purposes and reflecting different designs. Some focus on providing monies for final expenses, while others allow you to build wealth through investments or accumulation of interest. All types of life insurance provide a tax-free benefit to your beneficiary.
Let your local GCB agent explain the types of insurance available, analyze the costs and help you select a plan that will provide your family with the security they need and give you peace of mind.
Term Life
The most basic type of life insurance, Term Life is an attractive option for many young couples and individuals because it is typically the least expensive. Term Life also covers you for a specific period of time (such as 15, 20 or 30 years) and pays a death benefit only if you die during the term.
Universal Life
Universal Life lets you pay premiums at any time, in virtually any amount, subject to certain minimums and maximums. You can pay premiums in advance and even skip payments in certain circumstances. Over time, you can increase or reduce the death benefit as your needs change.
Whole Life
Designed to cover you through your entire lifetime, Whole Life builds cash value on a tax-deferred basis. The cash value can be accessed by the policy owner for extra income, emergencies, or college expenses. Amounts withdrawn and not re-paid will be deducted from the policy’s death benefit.
Final Expense
Final Expense is another form of whole life insurance coverage for the various costs associated with your death and end-of-life expenses. This insurance covers items such as funeral expenses and settling of debts including credit card balances, car loans, mortgage loans, legal fees and other expenses.
FREQUENTLY ASKED QUESTIONS
Here are a few questions and answers to get you started. Visit East Texas Benefits for in-depth information and articles on specific topics.
For most Americans, buying a home is our single most expensive purchase ever. And the costs do not stop with the initial purchase. Many years after settlement, even after paying off the mortgage, homeownership remains an expense that must be planned for. Heat, electricity, insurance, plumbing, taxes, ongoing repairs and maintenance, and more are always present. Paying these costs can create a crisis if one of the owners dies leaving financial gaps.
Life insurance can help a surviving spouse remain in the house or perhaps keep the house in the family. This insurance provides money to pay the monthly bills or may even help pay off any remaining mortgage. The cash benefits can also help keep the home in proper repair and maintain its value.
Your marriage and your money are tightly connected. So the financial impact of the death of a spouse can be profound. The possible loss of one-half of income can make it difficult for your spouse to pay the mortgage or rent, get healthcare — or even buy food and clothing. There will also be an impact if you both were collecting Social Security.
This is why life insurance is particularly important. It can help supplement Social Security benefits (which average about $1,300 a month) and add to any money you have saved over the years. Click here to review Social Security benefits. And, life insurance can ensure that your final expenses (which can be as much as $10,000 or more, according to some reports) will not be a burden to your spouse or others you care about.
For additional funeral tips, click here.
Chances are you can get some type of insurance, regardless of your budget, health or age. Many seniors feel they are “too old” to get life insurance — even though it can clearly be important to help care for loved ones and pay remaining debts and responsibilities after they are gone.
Of course, the kind of protection you can get may depend on your health and what you would like to pay. There are many types of coverage in the marketplace — affordable term, permanent whole life insurance, and guaranteed acceptance plans that will offer you protection regardless of your health.
The growth of Universal Life Insurance, and of Indexed Universal Life in particular, may be the most exciting and promising trend in the industry.
Universal Life is permanent life insurance has increased flexibility and the capability of being a retirement investment tool. A typical universal life plan has a death benefit, which you can adjust, and a savings component. You can review the amount of your premium payment and even change it over time. You may be able to use accumulated interest to pay premiums. Cash values grow on a tax-deferred basis for use later during retirement. Universal life policies pay a guaranteed minimum interest rate, and the actual rate may be higher than the minimum.
Indexed Universal Life policies allow you to put your premiums in selected investment funds that could significantly grow the cash value of your policy. These policies do have more risk than a traditional universal life policy, so ask a professional what is best for you.
Whole life insurance and graded benefit policies are two types of insurance you often read and hear about. Some reasons to consider these plans:
As its name indicates, whole life is designed to last a lifetime. It builds cash values over time and will always be there as long as you pay your premiums. Due to its advantages, whole life tends to be more costly than term life insurance.
Graded Benefit policies are plans with full benefits that are delayed until a year or two after purchase. Usually used to pay “final expense” costs, they are relatively inexpensive and easy to get. They are generally guaranteed acceptance products or have very simplified underwriting. Graded benefits may be available as either whole life or term life insurance.
There are few decisions as important as selecting the right life insurance protection. The financial well-being of your spouse or other loved ones rely on it.
The good news is, we can help. We can help guide you through a crowded marketplace and make choices that are best for your particular needs. We have access to many top companies and a wide variety of plans. Game Changing Benefits will help you understand what is different about each plan and what best fits your budget. The result can be more peace of mind for you and a better future for those you care about most.