How Life Insurance Works No Matter What
Life insurance in today’s modern world is a miracle product because it works whether you live or die. You can establish an estate that is legally sound for just a fraction of what will ultimately be left to your family should you die prematurely. And if you live to retirement and beyond, life insurance can help to provide funds for your golden years.
The Freedom Life Insurance company has products that can help you to accomplish both objectives and protect your family and your later years at the same time. Life insurance consists of two very distinct types of policies and you should be aware of both.
Term life insurance covers your needs if you should die prematurely very well. It is the least expensive type as it is temporary. It will enable you to purchase lots of life insurance, but it will expire in 10, 15, 20 or 30 years. However, when your family is young it will provide the most death benefit to protect them.
Permanent life insurance, or whole life coverage, covers you for the “whole’ of your life, and that is why it is also called whole life. It has a level premium as opposed to a term which will possibly increase in price as you age. Permanent life insurance also has a cash value that builds up within the policy. The cash value is really a reserve that is designed to offset the mortality risk that increases each year.
The cash value of a whole life policy can be borrowed by the owner of the policy and use for whatever use is desired. The loan can be paid back at any time as well. If a death occurs, the death benefit is the face amount of the policy less any outstanding loans. The cash value can add a significant amount of money to your retirement funding plans when you reach the age of retirement.
The Freedom Life Insurance Company offers both kinds of life coverage. When planning for your life insurance estate, both kinds of coverage, term and permanent is usually combined to take advantage of both types of coverage. Freedom Life Insurance has expert agents to help you with setting up a plan that is tailored to your needs.