Sometimes life throws unexpected curveballs our way. Life Insurance is a cost-effective way to ensure that your family is taken care of. At Wealth Guardian Financial we offer a wide variety of life insurance options. These include Term Life, Whole Life, Universal Life, and Indexed Universal Life. We only partner with the best insurance companies so our Client’s know they are safe.
Read below to find out more about the different policies that we offer.
A Term Life policy covers you for a specific time period or term. It tends to be less expensive than Whole or Universal Life. However, if you die outside of the term of your policy, your beneficiaries will not receive the death benefit.
There are two different types of Term Life Insurance. The first is renewable term. This kind must be renewed every year. Premiums will start out low but will rise as you age. The second type is level premium. It is more common than renewable term. You purchase a level premium policy to cover you for a specific number of years (typical 5, 10, 20, or 30 years). During your policy time period, your premium will not change.
Much like the name suggests, a Whole Life Policy will cover you for your entire life. Premiums are substantially higher than term life because the insurance company knows they will have to pay out your death benefit. You are guaranteed your premium will never change. Whole life policies also accumulate a cash value that you can borrow against.
This is a type of permanent life insurance that offers a cash value. Premiums that you pay for universal life policy go to two different places. Part goes towards the cost of insurance and the other part goes towards your cash value. After your cash value reaches a certain amount you will be able to borrow against it. Also, you can even use any interest accumulated by your cash value to pay your premiums. However, if you do not pay back the money you borrow it may reduce the death benefit paid out to your beneficiaries.
Indexed Universal Life
This type of policy is very similar to Universal Life. The main difference is that you have the option to allocate cash value amounts to a fixed or equity indexed account. Doing this will allow your cash value to grow even faster. Due to this, Index Universal Life policies are helpful retirement planning tools since they offer tax-deferred cash accumulation.