Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the “benefits”) upon the death of the insured person. The policy holder typically pays a premium, either regularly or as a lump sum. Life policies are legal contracts and the terms of the contract describe the limitations of the insured events.
The advantage for the policy owner is “peace of mind”, in knowing that the death of the insured person will not result in financial hardship for loved ones. Life insurance is often the most effective means to cover issues of family protection, including debt coverage, estate preservation and business continuity.
At Boggs Financial we offer three basic types of life insurance (Term, Whole life & Universal life) that we can structure to meet your needs.
Term insurance policy has a set duration limit on the coverage period, normally 10 or 20 year terms. Once the policy is expired, it is up to the policy owner to decide whether to renew, to convert to whole life or to let the coverage end.
This is insurance is a cost efficient solution for specific immediate coverage needs which may be only for defined amount of time such as business loans or mortgage protection.
A whole life insurance contract has level premiums and contains both insurance and an investment component. The insurance component pays a stated amount upon death of the insured.
Universal life insurance is a flexible low-cost protection of term life insurance as well as a savings element which is invested to provide a cash value buildup. The death benefit, savings element and premiums can be reviewed and altered as a policyholder’s circumstances change. In addition, universal life insurance allows the policyholder to use the interest from his or her accumulated savings to help pay premiums.
Both Whole and Universal life insurance are designed for individuals, families and business owners looking for:
- Retirement and estate planning
- Wealth accumulation / tax deferrals
- Wealth transfer and gifting to the next generation
At Boggs Financial we can help you decide which Life Insurance coverage will best meet your needs.
For a free consultation on how one of these Life Insurance products may work for you! Contact us at 519-848-2939.