Term and Permanent Life
Term Life Insurance
- Designed to provide life insurance coverage for a specific period of time. To continue coverage after the specified term has elapsed, you may need to reapply for a new insurance policy. At that time, the insurance company will again consider your health when determining whether to grant you, the insured, the insurance, unless you have an option to convert to a permanent plan without further evidence of insurability. Insurance may not be available after attaining a certain age.
- Typical term insurance pays a company-guaranteed death benefit to your beneficiary(ies) only if you die during the specified term the policy is inforce, providing the premiums are paid. However some recent term policies allow for a Return of Premium rider which allows the policy owner to receive the entire return of premium at the end of the policy period.
- Premiums for term life insurance are generally less expensive than for permanent life insurance over a certain time span. However, the cumulative costs of renewing term insurance can exceed the cumulative cost of purchasing permanent life insurance initially.
Permanent Life Insurance
- Provides life insurance coverage for the lifetime(s) of the insured(s).
- Pays a company-guaranteed death benefit to your beneficiary(ies), provided sufficient premiums are paid to maintain the policy inforce.
- Premiums are generally more expensive than for term life insurance because a portion of the premiums are applied toward your cash value buildup. However, the cost of renewing term insurance can eventually cost you more than the cost of purchasing permanent life insurance.
- The policy owner may access the cash value through loans or withdrawals. Both loans and withdrawals will reduce the cash value and death benefit. Loans are subject to interest charges. Under certain circumstances, there may be tax consequences in taking a loan or withdrawal.
Whole Life and Universal Life
Whole life: also called ordinary life, is traditional life insurance. In general, whole life offers:
- Level premiums and death benefit.
Universal life: also known as adjustable life, offers more flexibility than traditional whole life insurance. In general, universal life offers:
- Flexibility in premiums and death benefit.
- A competitive company-declared interest rate on the policy’s cash value which will never be lower than the policy’s guaranteed minimum interest rate.
- Current policy charges which will never exceed the guaranteed maximum charges.
Survivorship insurance – sometimes referred to as second-to-die insurance – can provide cash in the form of a death benefit that can be used to help pay estate taxes.
How much life insurance coverage do I need?
There are several factors that can influence how much life insurance coverage you need. We have provided the life insurance need and college costs calculators to help you review these areas, however we highly suggest that you consult with us to be certain your expectations will be met.
How often should I review my life insurance coverage?
Your life insurance coverage should reflect important changes in your life such as marriage, the birth of a child, a move, or a new job. Aside from these momentous events, a good rule of thumb is to review your coverage annually.
Electronic Life Insurance Questionnaire
In order for us to begin the application process please download the Life Insurance Questionnaire (MS Word format), save, and email/ fax back to Bedrosian & Associates. To move from field to field use the tab button and mouse for the drop-down options.