Protect What Matters Most
Life insurance may be one of the most important purchases you’ll ever make. In the event of a tragedy, life insurance proceeds can help pay the bills, continue a family business, finance future needs like your children’s education, protect your spouse’s retirement plans, and much more. If you’re considering securing you and your family’s financial future, we would be happy to review your current situation and offer a few ideas on how you can protect it!
Term Insurance
Term insurance is the most affordable type of insurance when initially purchased and is designed to meet temporary needs. It provides protection for a specific period of time (the “term”) and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.
Term policies are commonly sold in 10, 20 or 30-year terms with level premiums and no cash value. Learn more about term life insurance.
Final Expense
Loans, credit card debt, estate costs, the funeral... most people leave behind unpaid expenses when they die, expenses that, if left unattended, burden their families tremendously. Final expense coverage is life insurance that pays off these debts, ensuring that everything will be taken care of if you pass.
Final expense policies are small whole life policies, typically simplified issue and often available for ages 50 to 85. Face amounts are commonly $5,000 to $25,000. See final expense insurance for details.
Universal Life
Universal life insurance was created to provide more flexibility than whole life insurance by allowing the policy owner to shift money between the insurance and savings components of the policy. Premiums, which are variable, are broken down by the insurance company into insurance and savings, allowing the policy owner to make adjustments based on their individual circumstances. For example, if the savings portion is earning a low return, it can be used instead of external funds to pay the premiums. Unlike whole life insurance, universal life allows the cash value of investments to grow at a variable rate that is adjusted monthly.
Whole Life
Whole life insurance is a life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured. The investment component accumulates a cash value that the policyholder can withdraw or borrow against. As the most basic form of cash-value life insurance, whole life insurance is a way to accumulate wealth as regular premiums pay insurance costs and contribute to equity growth in a savings account where dividends or interest is allowed to build up tax-deferred.
Whole life coverage lasts your lifetime with level premiums and guaranteed cash value. Learn more about whole life insurance.
How Much Life Insurance Do You Need?
There is no single right amount. A helpful way to start is to add up what your family would need if you were gone, then subtract what you already have. Kris walks through these questions with you and shows how different policy types and amounts change the premium.
- Debts you would want paid off, such as a mortgage, car loan or credit cards
- Funeral and final expenses
- Years of income your spouse or family would need to replace
- Future goals, such as a child’s or grandchild’s education
- Savings, existing policies or workplace coverage you already have
Life insurance guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Kris is a licensed insurance agent, not a tax, legal or investment adviser.
Life insurance and annuity products are issued by the insurance company, and guarantees are backed by the financial strength and claims-paying ability of the issuer. Kris Kryder is a licensed insurance agent, not a tax, legal or investment adviser.