Life Insurance
Life insurance is a crucial step in planning for your future and the future of your loved ones. It can fulfill promises made to your family if you are no longer around by providing a death benefit to your beneficiaries in return for premiums paid to the insurance company. Life insurance can also provide benefits while you are living. Contact Prime Pacific Insurance for help deciding which Life Insurance policies are right for you and your loved ones.
Life Insurance policies to help make sure you and your loved ones are taken care of.
Term Life
This coverage lasts for a limited time, typically 10, 15, 20, or 30 years. However, when your term ends, you're no longer protected – you either have to apply for a new policy at a higher cost (because you're older) or go without. However, some term policies may let you transition to a permanent policy in the future.
Whole Life
This is permanent life insurance coverage that can provide guaranteed protection for the rest of your life while earning additional cash value that can be used for things like policy loans. Whole life
policies don't expire as long as your regular premiums are paid. Policies from a mutual life insurance company may also provide dividends, helping you fund life's other financial opportunities.
Universal Life
Like whole life insurance, this type of policy provides permanent protection and can earn additional cash value. However, universal life insurance can give the added flexibility of adjusting your monthly payments within a specific range to help you better deal with changing work circumstances.
Joint Life Insurance
This type of coverage is sometimes called survivorship life insurance or second-to-die life insurance, and the benefit is paid out only after the second (surviving) person passes away. It can’t provide income replacement for the surviving spouse – instead, the payout goes to the couple’s beneficiaries. Why get this type of policy? It’s typically purchased for estate planning and can be an option to help address concerns with the time and uncertainties of probate (the legal process for validating a will) while also providing:
Liquidity to pay estate and inheritance taxes
Assets to generate income for other surviving dependents
Estate equalization among heirs
Funding for special needs children
It’s important to remember that the beneficiaries of a second-to-die policy don’t have to be the couple’s children or relatives. This type of policy can also be used to simplify the transfer of assets to a non-relative, such as a friend or business associate. For that matter, the beneficiary doesn’t even have to be a person – the payout can be used to leave a legacy for a favorite charity or religious organization, or as funding for a family trust.
Disability
Disability insurance provides partial income so you can pay your bills if you get too sick or injured to work. Disability happens to more people, more often than you may think. In fact, more disabilities are caused by illness than injury, including common conditions like heart disease and arthritis, and most disabilities are not covered by Workman’s Compensation.
Some employers will offer short and long-term disability benefits to their employees. A short-term policy helps you immediately after an incident, and a long-term policy helps provide financial protection for disabilities that can last for years. You can also pay for additional coverage on top of the benefits you get at work to help provide extra financial protection.