A Strategic Approach to Safeguard Your Family
Life insurance is one way you can provide financial support to your loved ones after you pass away. When you open a life insurance policy, you are signing an agreement between you and an insurance provider. You will pay a regular premium, often monthly or annually depending on your policy, in exchange for coverage from the provider. As long as your policy is active when you die, the insurance company will pay out a lump sum, also known as death benefit, to the policy beneficiaries.
Life Insurance Options Explained
Even though many life insurance policies work the same way, each specific type have significant differences.
- Term life insurance guarantees death benefit payment if you pass away within the specific term. Once the term has expired, you can either renew it for another term, covert the policy to permanent coverage, or allow the term life insurance policy to terminate.
- Whole life insurance, also known as traditional life insurance, is a permanent life insurance policy that includes level premium payments, along with a guaranteed death benefit and a guaranteed cash value component.
- Universal life insurance is a type of permanent life insurance that offers a guaranteed death benefit, allows you to tap into the policy’s cash value, and gives you the flexibility to adjust your premium payments and death benefits.
- Indexed Universal Life (IUL) is also a type of permanent life insurance that allows premium flexibility and growth opportunities that are linked to market index performance. This product also offers the downside protection of a floor to help against market losses.
- Variable Universal Life (VUL), another type of permanent life insurance, offers the potential to build cash value through sub-accounts with a variety of investment options.
Want to know how much life insurance would cost for you? Use our life insurance calculator to determine today.
Choose CBIZ Individual Insurance Solutions
Life insurance is one of the most important things you can do to protect yourself, your family, and their future. Through proven solutions, time, and commitment, together we can create a life insurance plan that meets your overall financial needs and goals.