Senior Assist 

"It's Your Move...Choose Wisely"

           WHAT IS LIFE INSURANCE?

 A life insurance policy is a contract with an insurance company that provides a lump-sum payment (death benefit) to beneficiaries in the event of the insured's death.

WHAT TYPES OF LIFE INSURANCE ARE AVAILABLE?

There are many varieties of life insurance; typically life insurance is based on the needs and goals of the policy owner. Below are some of the more common types of life insurance:

TERM LIFE INSURANCE: Term life insurance is designed to provide financial protection for a specific term of time, such as 10 or 20 years. With term life insurance, premiums are generally level and guaranteed for that specific term of time. After that period, policies may offer continued coverage, but generally at a MUCH higher rate. This type of plan is good for when you want to provide coverage for your greatest need years, such as when your children are in college or to cover your home mortgage.

WHOLE LIFE INSURANCE: This is a type of permanent life insurance designed to provide lifetime coverage. Because it provides lifetime coverage, the premiums are generally higher than term life. whole life insurance has a cash value, which functions as a savings component and may accumulate tax-deferred savings over time.

UNIVERSAL LIFE INSURANCE: This is another type of permanent life insurance designed to provide life-time coverage. However, unlike whole life insurance, universal life insurance policies are move flexible and may allow you to raise/lower your premiums throughout your lifetime. Universal life insurance also has a tax-deferred savings component. Due to the life-time coverage, universal life premiums are generally higher than term life rates.

DO I NEED LIFE INSURANCE?

Life insurance really depends on your own personal family and financial situation. Some things to consider when it comes to life insurance are your standard of living (savings and income), how much your standard of living would be affected by death, and expenses with death (funeral, burial, attorney). Weighing these factors can help you in determining if you should get life insurance. Below are some common factors that signal you may need life insurance:

• You have survivors that depend on you for their livelihood
  
• You have debts that need to be paid off
  
• You have a spouse and/or children you want to provide for
  
• You have mortgage(s)
  

Really, the decision to get life insurance is up to you. You need to analyze your situation and determine if life insurance is worthwhile.