Life Insurance Greenville SC is a way to help financially support your loved ones after you’re gone. It can pay off your mortgage, cover funeral costs, and provide income to your family in the event of your death.
The type of life insurance you choose depends on your needs. Some policies even have cash value potential.
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Term policies are the most common and affordable type of life insurance. They offer coverage for a set period of time. You pay a premium, and if you die within the policy’s term, your beneficiaries receive the death benefit. This benefit is typically tax-free* and can be used to help settle estate debt, cover funeral costs, or provide income replacement.
Term policies can be purchased for periods such as 10, 20, or 30 years or may be renewable at a higher rate each year. Most term policies also allow you to convert to a permanent policy without a medical exam at the end of the term.
When shopping for a term life insurance policy, consider your family’s unique needs and the amount of coverage you might require to meet those needs. A financial professional can help you determine an appropriate level of coverage. It’s also helpful to calculate your family’s debt and expenses, such as mortgage payments, childcare costs, and college tuition.
Once you have an idea of the amount of coverage you need, you can use a term life insurance calculator to estimate your coverage needs. This will help you understand the minimum amount of coverage your family might need to cover outstanding debt and other expenses, and will give you a sense of the range of terms and premiums available.
Another factor to consider is whether you would like to build cash value in your life insurance policy. Whole life policies can build a cash value that you can access or borrow against, and they can be more expensive than a comparable term policy.
Pacific Life offers a variety of term life insurance policies that can be customized to fit your specific needs. If you’re interested in learning more about how term life insurance can be a part of your overall financial plan, contact us to set up an appointment. We can explain the pros and cons of each type of coverage and help you choose the right option for your lifestyle.
Whole Life Insurance
Whole life insurance, as the name suggests, provides coverage for your entire lifetime. It also has a savings component that builds cash value over time, with interest accruing on a tax-deferred basis. These features make it a popular choice among individuals looking for more than just the death benefit protection of term life insurance.
Traditional whole life is one of the most common types of permanent life insurance, and accounts for 60.7% of all individual policies sold in the United States. It can provide a large lump-sum payment to your loved ones after you die, as well as accumulate cash value that can be withdrawn or borrowed against. It’s important to note that any outstanding loans or withdrawals from the cash value portion of your policy will reduce the death benefit payable to your beneficiaries.
In addition to its savings feature, whole life policies typically have a premium that is guaranteed to remain level for your entire lifetime as long as you pay the required premiums. The amount of your premium depends on a variety of factors, including your age and health (including the results of your life insurance medical exam), as well as the specifics of the policy you select.
Some whole life insurance plans offer the option to pay a single, lump-sum premium. Others allow you to pay a regular premium for a set period of years, such as 10 or 20 years. Then, your premiums will be paid off, and the policy will terminate.
Other varieties of permanent life insurance include universal and indexed universal life, but they generally have higher premiums than those of a traditional whole life policy. For that reason, those policies may not be a good fit for everyone. If you’re interested in learning more about the various types of permanent life insurance, talk with your life insurance agent. They can help you decide which type of life insurance is best for your needs and budget. Then, you can shop and compare your options to find the best policy for you. And don’t forget to keep your beneficiary designations up to date – it could be the difference between your family receiving the inheritance they deserve and nothing at all!
Universal Life Insurance
A universal life policy is a permanent policy that builds cash value and offers flexibility for premiums, death benefits and other living benefits. While whole life policies offer level premiums and fixed death benefits, universal life policies allow you to adjust your death benefit or even your premiums (within certain limits) as your needs change. This allows you to tailor the coverage to your specific circumstances and budget.
In addition to the flexible premiums, universal life insurance also allows you to borrow against your accumulated cash value or make withdrawals, which can be used for almost anything. The accumulated cash is tax-free. Policyholders can use this money to supplement their income or pay for expenses, such as a mortgage. However, policy loans must be paid back, and unpaid loans reduce the death benefit.
While UL policies offer flexibility in premium payments and death benefits, they do not provide the same guarantees that whole life insurance does. This means that you may have to pay higher premiums than if you bought a whole life policy.
Depending on your policy type, your cash value can earn a rate of interest that is either market-based or guaranteed to be at least a minimum rate. This can be an attractive feature for some policyholders, but you should keep in mind that if the interest rate is low, your policy’s cash value will not grow as quickly.
With a variable universal life insurance policy, the cash value can be invested in a variety of markets and funds. This can offer higher growth potential than a traditional UL policy, but it can also be more risky. Because of this, it is important to work with a financial professional to understand the pros and cons of this policy type.
Whether you are interested in the flexible premiums and death benefits of a universal life insurance policy or want the security of a whole life insurance policy, we can help you find the best coverage for your situation. Contact us to get started. We are committed to helping you reach your personal and financial goals.
Variable Life Insurance
If you’re seeking more growth potential than traditional whole or term life insurance policies provide, you might consider a variable life policy. This type of permanent life insurance combines protection and investment, but it requires more involvement on the part of the policyholder, and its performance depends largely on your choices regarding how to invest your cash values. The cash value can be allocated to various asset options, mainly mutual funds, with each offering its own level of risk and return.
This flexibility allows you to tailor a variable life policy to fit your financial goals, but it comes with the added risk of losing money in investments that perform poorly. Additionally, you may pay higher fees and expenses than those associated with other types of life insurance policies.
It’s important to review the policy’s prospectus, which should offer detailed information on the policy’s fees and expenses, along with its investment options and death benefit. You also should consider federal and state tax rules, which may vary considerably from one jurisdiction to another.
While a variable life policy can offer more potential for growth, it’s generally more expensive than other life insurance policies. That’s because it is considered a securities contract, and its cash value and any investment returns are subject to market risks.
As with all policies, it’s important to undergo thorough medical underwriting before purchasing a variable life policy. This is because any health conditions or other unfavorable underwriting factors may exclude you from coverage or increase your premium. It’s also a good idea to work with an independent fee-only financial planner who can help you determine whether a variable life policy is the right fit for your lifestyle and financial goals. They can also help you compare it to more common life insurance policies, including whole and term life. They can even suggest alternatives if they don’t think this type of policy is a good fit for you. A fee-only planner doesn’t receive commissions for selling you a particular type of life insurance, so they can offer unbiased advice to suit your needs.