Life Insurance
What is life insurance?
A life insurance policy is a contract between you and an insurance company. In exchange for regular payments, called premiums, the insurer pays out money after you die. This payment goes to the people you choose as beneficiaries — usually children, a spouse or other family members. It can be an important safety net if anyone depends on you financially. Beneficiaries can use the money to repay debts, replace your income, or provide funds for future expenses like college tuition.
What are the three types of life insurance?
This coverage lasts for a limited time, typically 10, 15, 20, or 30 years. It's very easy to get a quote and buy term coverage, and it's also typically more affordable than permanent whole or universal life insurance. However, when your term ends, you're no longer protected – you either have to apply for a new policy at a higher cost (because you're older) or go without. However, many term policies (such as those from Guardian) may let you transition to a permanent policy in the future. You may also be able to get a policy through your employer at a lower group rate.
Why you need to consider life insurance?
Life insurance is an important part of your financial wellness, regardless of your family status. Here are types of coverage to consider for what's important to you:
- Single adult starting out
- Income-producing parent
- Stay-at-home parent in a young family
- Homeowner
- Student loan co-signers
- High net worth individuals
- Business owners
- Planning for retirement
If you pass away and don't have life insurance, final expenses and other costs could be a burden on those around you. For example, the average cost of a funeral is $7,000 - $10,000.5 And if anyone, like a parent, has co-signed for loans or other types of debt you have — including some student loans — that person could be responsible for the debt, or related taxes.
Term Life
The pros and cons of term life
Advantages
- Affordable form of coverage
- Provides coverage while it's needed most
- Highest death benefit amount per premium dollar
- Affordable for young, healthy policyholders
Disadvantages
- No cash value component
- Coverage is not permanent
- Once the term expires, there's no payout
- Typically more expensive to renew when you get older
Whole Life
Why people choose whole life insurance
From the first day the policy is in effect, it provides an income tax-free death benefit to help protect your family's financial wellbeing.4 But unlike a term policy, your coverage lasts a lifetime – it can't be canceled as long as premiums are paid.
Universal Life
Why people choose universal life insurance
From the first day the policy is in effect, UL can provide an income tax-free death benefit to help protect your family’s financial wellbeing.4 And as long as you keep a positive cash value amount, your coverage can’t be canceled.
4227 South Meridian STE C237
Puyallup, WA 98373
(Google Map)
Office: 253-212-9919
Toll Free: 800-671-9217
Fax: 877-679-7262