Florida Life Insurance
There are many different kinds of life insurance policies, but generally all life insurance can be grouped into three main categories: term life insurance, universal life insurance, and whole life insurance.
Term Life Insurance provides low cost level death benefits for a ten, twenty, or thirty year period. Ten and twenty year level term policies can be automatically renewed without proving insurability. When a ten or twenty year term policy is renewed, it is renewed using the rates for the insured's attained age.
For example, if you purchase a 10 year term life insurance policy at age 30 with the Guaranteed Renewability Benefit Rider, you can renew the policy at age 40 for another 10 years. Your premium will go up based on you being 40 years old instead of 30 years old.
Universal Life Insurance offers flexibility in how premiums are paid and security in knowing you do not have to qualify again once the policy is issued. Universal Life Insurance is sometimes called "Cash Value Term Life Insurance" because you pay for life insurance today while also paying into a "Cash Value Account" for life insurance tomorrow.
The older a person becomes the more expensive life insurance becomes. The "Cash Value Account" in Universal Life Insurance policies accumulates the money needed to pay for a person's life insurance in later years. The life insurance company also pays interest on the money in the "Cash Value Account"
There are different kinds of life insurance policies that can be purchased for different reasons. People become confused and not sure what kind of policy they really need, so they put off buying life insurance or ignore there life insurance needs. The Universal Life Insurance policy is probably the one policy that most people don't understand and have the most questions about. A Universal Life Insurance policy is simply a Term Life Insurance policy that builds a cash value. The insurance industry created the Universal Life Insurance policy as a way to provide permanent life insurance (or a life insurance policy that you can have for your entire life) that is more affordable than a Whole Life Insurance policy. Part of the premiums you pay on a Universal Life Insurance policy go to paying the current cost of the life insurance while another part of the premium accumalates in the "cash value" account to pay the cost of the life insurance when you become very old. The insurance company can invest the "cash value" portion of the premium and make a return to offset the cost of the life insurance when you are very old, thereby reducing the overall costs of the policy to you. Plus, you have an asset in the cash value that you can borrow against if the need arises.
Whole Life Insurance is used to provide mature adults affordable life insurance coverage. Whole Life Insurance is used to pay for final expenses, as a cash reserve in case of financial emergencies, or to pay off personal debts. Whole Life Insurance is generally issued to anyone 50 through 80 years old.
There are many reasons you need to own life insurance: to pay off a mortgage, to provide a college education for your children, for final burial expenses, to ensure your insurability as you grow older, or to ensure your business partner or family member can continue a business.
Some people ask for a Mortgage Insurance quote - what they are really asking for is a life insurance quote. Most people that own a home have a mortgage on it, and most people that have a mortgage usually have to work at a job to earn money to pay the mortgage payment each month. If you are the primary wage earner for your family or "bread winner," what happens if you suddenly die in an accident or from an illness. How will your spouse and children handle the mortgage payment? The answer is life insurance.
You have to purchase life insurance on yourself and spouse to make sure money is available to pay the mortgage payment or pay off the mortgage entirely. Life Insurance does not have to be expensive. There are many different life insurance products to choose from - each are designed to cover specific situations.
For example, you can purchase a 30 year term insurance policy to cover your 30 year mortgage on your home. Or purchase a 15 year term policy to coverage a 15 year mortgage on your home. Maybe you only have 10 years left to pay on your mortgage? Then you could purchase a 10 year term policy. Fuller Insurance can customize the life insurance coverage to meet your mortgage insurance needs.
Key Man Insurance is a Term, Universal, or Whole life insurance policy that is purchased on an "important person" in a business. The "important person" could be an owner, partner, or even just a valuable employee. If the "important person" were to die in a sudden accident or illness, it could devastate the operations of the business and jeopardize its very existence. But with a life insurance policy on the "important person," the business would have cash on hand to weather the storm and replace that person. Key Man Insurance is generally a business expense, like health insurance or general liability insurance.