At Connell Insurance Agency (CIA), we do not only sell insurance products. We partner with our customers throughout South New Jersey and the suburbs of Philadelphia to help manage their assets through growth and protection with a full range of life insurance products. While life insurance in general will provide a financial resource for your loved ones in the event of your death, certain types will provide additional benefit while you are living.
Term Life Insurance
Typically the most affordable option, term life insurance provides a remedy for people who have substantial fiscal protection needs but only for a short period of time. This is generally the best choice for young families who are just starting to develop their financial plan. Term life plans allow you to choose the length of a policy’s life – anywhere from as low to five years up to the age of 65. Certain policies will allow you to increase your coverage at certain points during the policy’s term while others pre-set a scheduled decline in benefits as you age.
Whole Life Insurance
Whole life insurance combines a cash accumulation element with a duration policy. This type of coverage provides steady orderly cash accumulation inside the policy and is often used to aid beneficiaries to pay estate or capital gain taxes on inheritance so that properties can be kept within a family. Whole life insurance earnings will grow on a tax-advantaged basis, and you may borrow against your cash value.
Universal Life Insurance
Universal life is another type of permanent policy, like whole life insurance, however differs in that it generally offers more flexible premiums, varying face amounts, and an unbundled pricing structure. Universal life policies also build cash value according to an interest rate that is guaranteed to stay above a specific level, regardless of what’s happening in the economy.
How much coverage do you need?
This will depend on multiple factors: Will your loved ones be able to live comfortably if you were to pass away? Are you married, with children? Are you paying a mortgage? It’s important to not wait until you are retired to start discussing life insurance. You can find an affordable policy while you are young and then covert it as your needs change.