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There are two principal types of life insurance which are predominant in todays insurance market..... permanent Universal Life and Level Premium Term Polices. Traditional Whole Life Policies are still available, but not as popular as they once were.
A UNIVERSAL LIFE policy is typically written for someone who desires "life long" coverage. Although configuring a Universal Life policy can be somewhat involved. The nuances of Universal Life policies and understanding their flexibility usually require personal follow up and discussion.
LEVEL TERM LIFE requests require the specification of length of term.
A Request for Quotation submittable form is found at the bottom of this page.
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THOUGHTS ABOUT FLEXIBLE UNIVERSAL LIFE
Generally, Flexible Universal Live provides the best option for lifetime life insurance protection.
By "Flexible", we mean that the within certain guidelines the face amount, the premium paid, and cash value accumulation can all vary. This means that the policy can change as one's requirements change.
* The breadwinner of a young couple wishes a high level of coverage through his working years, that period when children are going to be home and a mortgage needs to be protected. He knows that he will always want a policy in force, as someday it may be a benefit that may be paid to his children or his grandchildren. With an FUL, the face amount can be reduced in later years to meet his reduced future needs. The premium requirements may be reduced in concert.
* Or conversely, he may only be able to afford a small amount of coverage now, but knows he will want a high level of coverage later. An FUL will allow him to apply for an increase in coverage to meet those needs. His application would have to be medically reviewed and approved, but there are economies in being able to modify an existing policy vs pay for a completely new, additional one.
* Or, he's confident that he can purchase and maintain a level of coverage that will see him though long into the future. What he doesn't know is whether or not the policy will be needed after retirement. He structures the policy so that a nice amount of cash value will be available to him at age 65, in the event he sees he needs no further coverage and wishes to obtain the value of the policy at that time.
* Years later, he has a son for whom he wants to purchase an FUL policy. The son has no income stream to protect, but he's observed how expensive permanent insurance can be as one ages. So, he decides to buy a policy for his son that can start producing cash value at an early age, and will remain more reasonable in premium for the rest of his life. He decides to pay the premium himself until the child reaches adulthood and is working, at which time he will turn over the premium payments the son.
These are just a few of the endless possible coverage options.
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THOUGHTS ABOUT LEVEL PREMIUM TERM LIFE
Level Premium Term Life serves the best way to provide for specialized circumstance coverage.
By "Level Premium Term", we mean that that once issued, the premium is guaranteed level for the length of the term. LPT provides the best and most flexible method of meeting the needs of those not ready or able to commit to a lifetime plan.
Generally, the term lengths available are for 5, 10, 20 (issued for ages under 51), and even 30 years (issued for ages under 61). These policies are guaranteed convertible to a permanent plan, such as an FUL, until age 65, without proving additional insurabilaty. This feature can be very important in the unfortunate event of a serious illness diagnosis near the end of the policy term, as it gives the insured a unilateral right to convert the policy to a permanent plan. An important optional feature is the Critical Illness Rider, which pays a portion of the face value of the policy to the insured who meets certain critical illness guidelines, prior to death.
* A young working couple has just had a child and is purchasing a new home. A tremendous financial exposure exists for either, should one spouse die, for at least 20 years - until the kids and mortgage debt are mostly gone and the household income stream is higher. Each can obtain a LPT for a period of time which protects the other's financial survival in the event of a loss. She may only take out a 20 year policy, as it's expected that by then his main exposure in the event of her loss, child care for the young, will be past. He, however, takes out a 30 year policy as he wants to be as sure as he can that she and the kids are well taken care of, even after the kids are out on their own.
* However, he wants to be really sure that no matter what may come the family's way in the event of his loss, it's well protected. So although her policy is for $250,000, his policy is for $500,000. In addition, he's pretty sure that his income along with their health insurance would take care of her if she were seriously ill, but he's not sure about the other way around. So in addition, he takes out the Critical Illness rider.
* It turns out that he lands a good job and has a life insurance benefit at work. But he's also young and sees how price effective LPT insurance can be. Also, one of the main reasons he decides to act now, instead of waiting, is that he wants to "protect" his "insurability" in the event that health issues befall him sometime in the near future. So, he purchases an LPT policy for supplemental protection while he is young, insurable, and the policy is near minimum pricing.
These are just a few of the endless possible coverage options.
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