Life Insurance
San Jose

Life insurance can deliver many benefits and helps provide for the loss of income that can occur when a family member dies. This money can help provide for dependents, pay for funeral expenses, or create an inheritance.

Choosing the Right Policy in North Carolina

There are a few different life insurance policies to consider. An agent at Griffin Insurance Agency can help you decide the best fit. Term life insurance is a simple form of life insurance. It will provide coverage for a specific period, and the younger you are when you purchase, the less you pay. There are some optional features for term life policies. Guaranteed renewal privileges allow you to renew the policy without having to prove insurability or be in good health. Conversion privilege will help ensure the right to convert the term life policy into a permanent one without having to prove insurability.

There are three different types of term life insurance. Level insurance will have the same death benefit throughout the policy. An increasing policy will have the death benefit increase by a specific amount and premiums will usually increase with the benefit. A decreasing policy has a death benefit that decreases throughout the policy, but premiums typically remain the same. Permanent life insurance helps protect you for the entire lifetime. There are different features of permanent life insurance as well. Cash value is the amount that can be available to the policyholder if the policy is canceled, and it usually increases over time as premiums are paid. Policyholders can also borrow money against the loan value. The loan can be paid back with installments or a lump sum. A traditional whole life policy is the basic time of a permanent policy, and the premiums will remain the same. Universal life is more flexible, and premiums can vary within certain limits. Variable life insurance allows the policyholder to choose how to invest the policy’s accumulated value.

What type of life insurance policy should you buy?

When your personal situation changes, you may need to re-examine your life insurance policy. If your income changes, you get married, or you have children, you may want to increase your coverage or purchase a different type of policy.

The types of life insurance policies vary, offering individuals the ability to choose a policy that best fits their needs and life circumstances. There are two main types of life insurance:

Term Life Insurance

Term Life Insurance is primarily used for temporary coverage and is typically purchased for a specific amount of time. Once a term life insurance policy expires, you must re-qualify for coverage based upon your current age and health conditions. The premiums on the renewal policy will most likely be higher due to increases in the age of the insured. Benefits from a term life policy are paid to the beneficiaries only if the insured dies within the specified period of time for which the policy was written. Term life insurance does not build a cash value.

Whole Life Insurance

Also referred to as "permanent life insurance." It offers financial protection in case of an untimely death. It also serves as a financial investment as premiums contribute to the cash value of your policy and can be used to help pay for college expenses, estate planning, or retirement. The cash value increases each year and is tax deferred. The premiums are generally more expensive than term insurance; however, premiums will not increase over time. With whole life insurance there is a guaranteed death benefit payout: since the policy is effective for the entire length of your life, your beneficiaries are guaranteed a payment regardless of when you pass away. There is no need for renewal with whole life insurance – coverage lasts for your entire life.

With the majority of American households depending on two incomes, it is even more critical to obtain life insurance to ensure financial security in the event of an untimely death. Do you have enough life insurance to meet the financial needs of your dependents?

Contact Griffin Insurance Agency to get a quote on life insurance.

Frequently Asked Questions

• What are the tax advantages of life insurance?

  Life insurance proceeds are generally income tax-free to the beneficiary. The cash value growth in a permanent life insurance policy accumulates on a tax-deferred basis. Policy loans are typically tax-free as well, provided the policy stays in force.

• How can life insurance be used for estate planning?

  Life insurance can provide liquidity to pay estate taxes and other expenses, ensuring that your heirs receive their inheritance without the need to sell assets. It can also equalize inheritances among heirs when other assets are not easily divisible.

• What are the different types of life insurance?

  The main types of life insurance are term life insurance, whole life insurance, and universal life insurance. Term life insurance provides coverage for a specific period, while whole life and universal life insurance offer lifelong coverage with a savings component.

• What type of life insurance policy should you buy?

  When your personal situation changes, you may need to re-examine your life insurance policy. If your income changes, you get married, or you have children, you may want to increase your coverage or purchase a different type of policy.