Life insurance is designed to provide financial benefits to your loved ones in the event of your death. A life insurance policy can be difficult to select if you aren’t sure how much money is needed to help your loved ones following your passing. At Mountain Ridge Insurance Group, we work with you to find affordable life insurance policies to provide coverage for your loved ones. Don’t wait when it comes to purchasing this type of insurance; you need to be happy knowing your loved ones will be taken care of in the event of your death. Contact our Ogden insurance company to discuss your insurance policy needs.
What is Life Insurance?
Life insurance is a contract with an insurance company to provide them with a premium payment in exchange for a set coverage amount. If you pass away, a lump-sum payment can be paid to your beneficiaries. The difficult part is when you are trying to determine which insurance option is right for you and your family.
We will meet with our clients to discuss your financial situation and your goals for your family. There are three main types:
- Term life insurance
- Universal life insurance
- Whole life insurance
It is important to note that life insurance is provided following your death, and all benefits paid are normally tax-free. Of course, that depends on the insurance policy you select.
Term Life Insurance
Term life insurance offers financial protection for your loved ones for a set number of years. You will pay a set premium for the life of the insurance plan, normally 10-20 years. Following the expiration of the term insurance plan, you will be eligible to renew your insurance plan. The premiums normally increase at the end of a term life insurance plan, but it is normally cheaper from other insurance plan options. This type of insurance is beneficial if you end up losing your job or you pass away with a mortgage that has not been paid. Beneficiaries can use the money from the insurance plan to pay off the home and to put the money towards other things, like college. Term life insurance is paid out to your beneficiaries as a single lump-sum payment.
Universal Life Insurance
Universal life insurance is a permanent life insurance policy designed to offer coverage for your entire life. Unlike the whole life insurance policies, a universal life policy does come with some flexibility. Policyholders can raise or lower premiums based on the desired coverage level. This type of insurance is beneficial, as it can be coupled with your estate plan to ensure your wealth is properly distributed to your loved ones after your passing.
Whole Life Insurance
Whole life insurance plans are designed to offer lifetime coverage for the policy holder. A whole life policy is more expensive from others, as it will last the duration of your life. The premium payments are normally a fixed fee, but it does come with a cash value, allowing saving by deferring taxes over time. Whole life is normally used by individuals seeking to help preserve their wealth and guarantee it will pass to their loved ones with their estate.
Why Do I Need Life Insurance?
A death of a loved one is an emotionally heart-wrenching process. The financial and emotional stress many families feel after the passing of a loved one can take a toll on them. Leaving behind a life insurance policy helps to reduce some of the pain and burden by ensuring your loved one’s lives will be financially looked after. Individuals that purchase life insurance are committed to taking care of their families. To learn more about this type of insurance policy, contact Mountain Ridge Insurance Group in Ogden at 801.820.6402. You may also reach us by filling out our online contact form.