Myrtle Beach Life Insurance
Life insurance can be separated into two primary categories, term and permanent. Depending on what your needs and goals are will be the basis on which type of policy we recommend for your situation.
Term Life Insurance
Term life insurance is easiest explained as "just in case" insurance. Meaning, I want insurance coverage "just in case" something happens to me during a period or term. Term insurance is typically the most affordable life insurance, and normally you can purchase ranges between 1 to 30 year periods of term or to a specific age. Most young families start with term insurance because they tend to have a higher amount of debt to income due to starting out in a career and having mortgages, student loans, car loans, and other types of debt.
This is a perfect scenario to purchase a 20 or 30 year term that will cover you until your children have reached an age that they are no longer financially dependent upon you and give you some time to pay down your debts. Term insurance can also have riders with in the contract that allow you to convert your policy to a permanent insurance policy without going through medical underwriting up until a certain age or for a period of time (each policy is different and not all term policies have this ability in their contract).
Term insurance is also a great business tool to fund a buy/sell agreement or to cover a large debt. When 2 or more partners form a partnership or corporation it is always a good idea to design some sort of succession planning in the case of an untimely event that one partner passes away. Putting term insurance policies on each of the partners could be an affordable solution to purchase the portion of the company from that partner’s estate.
Also if a business takes on a loan, to expand their business the bank may require them to cover that debt with a life insurance policy on a key employee or owner. Since the loan is most likely for a specific amount of years it is easy to use term insurance to cover the loan at an affordable rate.
Key Reasons to Purchase
- Family Protection
- Mortgage Protection
- To Cover a Loan
- Buy/Sell Funding
- Key Man Insurance
Permanent Life Insurance
In Myrtle Beach
While term insurance is designed to pay out a death benefit "if" you pass away during a period of time, permanent insurance is meant to pay out "when" you pass away. Very few things are definite in life but death is certainly one of them. Permanent life insurance is designed to insure a person for the rest of their life and is normally put in place for final cost expenses, gift planning, estate planning, or legacy planning.
There are many different types of permanent life insurance but the most common are Whole Life, Universal Life, and Index Universal Life. Whole Life and Index Universal Life both have a lot of benefits that come with the policies including, cash value that grows inside of the policy similar to a savings account, and death benefits that can grow the longer the policy is in forced.
The cash value growth in a Whole Life policy usually is based off of a fixed interest rate plus dividends from the insurance carrier, and premiums are normally designed to stay the same for the life of the policy. The cash value in an Index Universal Life policy is based off of the growth of a particular Index, such as the S&P 500, and the premiums are often more flexible when compared to a Whole Life policy.
Finally there is Universal Life which is designed to be the most affordable permanent insurance option. Universal Life works similar to a term policy but can be designed to be guaranteed to age 90 and older.
Key Reasons to Purchase Permanent Insurance
- To Cover Final Expenses
- Gift Planning/Charitable Giving
- Estate Planning
- Legacy Planning
- For Cash Value/Saving Account
- Children’s Insurance
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