Types of Insurance
Term Life Insurance covers you for a set period of time. If the insured dies during this period, the beneficiary receives a lump sum of tax-free money. Term Life Insurance is ideal for young families with a limited budget where as much insurance as possible is required to secure the family's well being, or in business situations such as buy-sell agreements. Term Life Insurance is excellent for insuring a line of credit, mortgage, or loan. Several polies are available that are renewable and convertible up to various age limits.
Whole Life Insurance provides permanent coverage with level premiums and a guaranteed death benefit. It is perfect for people who think long term and wish to have a plan that is not subject to investment gains and losses. The policy also gains cash value over time, allowing for flexible cancellation options. Furthermore, though coverage is life-long, you do not have to pay premiums for life. You can purchase the insurance in a predefined number of payments: the shorter the payment period, the larger the discount.
Universal Life Insurance is permanent insurance with the added feature of having a tax- sheltered investment account built into the plan. Premiums are funded by the investment account, which accrues interest based on a portfolio of managed investments. Universal Life is a powerful financial tool in estate preservation, leveraging, buy-sell agreements, charitable giving, and pension maximization. The tax-sheltered status of its investment component can also allow it to help pay for itself.
Disability Insurance provides you with income if you become sick or injured and are unable to work. Disability is defined specifically as "Own" "Regular" or "Any" Occupation (for more info, see the disability insurance choices page). All disability insurance benefits are paid out tax free. Having a personal disability insurance policy could provide income during times of inability to perform your "Own Occupation," even though other sources of income continue. More importantly, it can provide your family with income when you can't.
Critical Illness Insurance pays a one-time tax free benefit 30 days after the diagnosis of a covered illness. It is like having your own private health care program - if you do not wish to wait in line for health care, you can seek professional services elsewhere. Insurance companies now cover up to 24 major illnesses, and you decide how to use the money (e.g., to pay down the mortgage, take a vacation, or provide family income).
Long Term Care Insurance provides a daily benefit for in home or nursing home care. Ideal for those approaching retirement age, long term care insurance means peace of mind knowing that you will never be a burden to your loved ones. Long term care easily erodes life savings, costing upwards of 40 to 60 thousand dollars a year, making this form of insurance a must for retirees.
Health & Dental Insurance covers many common medical expenses that the government health insurance plan does not, such as dental work, prescription drugs, eyeglasses, private, and semi- private hospital rooms. If you do not have an employer group health plan – and, therefore, are vulnerable to health care costs not covered by your government health insurance plan – supplemental health care coverage is important.