LIFE & Disability INSURANCE

You probably know someone who's had a similar loss. It's exactly why life insurance was created. It gives you and your loved ones incredible peace of mind that your financial life will be okay even after an unexpected, deadly tragedy. 

Life insurance is a contract with an insurance company that gives a beneficiary a lump-sum payment, known as a death benefit, when an insured person dies. There are different types, such as term life and permanent life.

Term life insurance gives you protection over a set period of time, such as 10 or 20 years, and permanent life provides lifetime coverage that may also grow a cash value.

If you want to make sure you get money back if you’re still alive when a policy expires, check out Return of Premium life policies. You can use the money to boost your retirement savings, pay off debt, or for anything you like.

Which type you should have depends on your financial goals and the needs of your loved ones..

Here’s the best answer: When you have someone who depends on you who would be hurt financially if you weren’t around. That could include your children, a spouse, partner, or aging parents who need your financial support now and into the foreseeable future. 

Term life insurance (also called pure life insurance) is a type of life insurance policy that lasts for a set number of years, or term. If you die before the term is over, the insurance company will pay the death benefit (also called payout). If you die after the term is over, the insurance company doesn’t pay. Pretty simple. 

Indexed universal life insurance, or IUL, is a type of universal life insurance. Rather than growing based on a fixed interest rate, it’s tied to the performance of a market index, like the S&P 500.

Unlike investing directly in an index fund, however, you won’t lose money when the market has a downturn. This is because a guarantee applies to your principal, insuring it against losses. On the other hand, there’s usually a cap on the maximum return you can earn. Many times, you’ll also be able to divide your assets between fixed and indexed portions of your policy.

Whole life insurance, or whole of life assurance, sometimes called "straight life" or "ordinary life," is a life insurance policy which is guaranteed to remain in force for the insured's entire lifetime, provided required premiums are paid, or to the maturity date. As a life insurance policy it represents a contract between the insured and insurer that as long as the contract terms are met, the insurer will pay the death benefit of the policy to the policy's beneficiaries when the insured dies. Because whole life policies are guaranteed to remain in force as long as the required premiums are paid, the premiums are typically much higher than those of term life insurance where the premium is fixed only for a limited term. Whole life premiums are fixed, based on the age of issue, and usually do not increase with age. The insured party normally pays premiums until death, except for limited pay policies which may be paid up in 10 years, 20 years, or at age 65. Whole life insurance belongs to the cash value category of life insurance, which also includes universal life, variable life, and endowment policies. 

Disability insurance (DI) is a form of income protection that pays you a portion of your monthly pre-tax income if you can’t work because of an illness or injury. The level of income replacement that a plan offers and how long you get payments varies by type of disability insurance. 

Long-term care (LTC) insurance is coverage that provides nursing-home care, home-health care, and personal or adult daycare for individuals age 65 or older or with a chronic or disabling condition that needs constant supervision. LTC insurance offers more flexibility and options than many public assistance programs, such as Medicaid.