Unfortunately, death is the inevitable factor of life. It can happen unexpectedly and more often than not, is impossible to predict.
At Heartland Health Insurance, we want you and your family to feel protected in times of great tragedy, such as the passing of a loved one.
Life insurance and estate planning go hand in hand, and help many families prevent insurmountable financial hardships due to a family member’s untimely passing.
Choosing the right life insurance policy, or even life insurance company is a very complex process. Each company is slightly different and there are many nuances to each policy. For the average client, understanding which policy to choose to best meet his/her/their needs is extremely overwhelming.
However, we are here to help!
Since 2005, we have helped many families pick a life insurance policy or policies that adequately secure their families’ futures. We source life insurance quotes from the most reputable policy underwriters; such as AIG, Prudential, Protective, Global Life, Legal & General, Lincoln Financial Group, Pacific Life and Mutual of Omaha to name a few.
We want to give you the peace of mind that you and your family are taken care of, especially if/when these types of tragedies arise.
Jacob has over 15 years of experience helping families like yours get the life insurance insurance policies available.
Life insurance is a legal contract between you (insured) and an insurance company, which puts in place a financial safety net for people you designate; such as a spouse, children, family members, etc. (beneficiaries) upon your passing.
The insured pays a monthly premium in exchange for financial compensation to his/her/their beneficiaries upon death.
The funds paid out by the life insurance company are able to be used for any purpose by the beneficiaries; such as covering funeral costs, paying off unsettled debts, mortgage payments, vehicle payments, college tuition, and more. Some death benefits are paid as a lump sum, others paid out over time, as an annuity.
There are a multitude of factors to consider when deciding on a policy that is right for you, and we are here to help you choose the best option.
Life insurance is generally recommended for anyone who has loved ones they support financially.
Beneficiaries most commonly include spouses, children, adopted/step children, parents, business partners, etc.
There are several different types of life insurance policies, with varying time frames, death benefits, and more.
The three major types of life insurance is "Term", "Whole" and "Universal".
There are nuances to each policy type, and we have summarized all three below.
Term life insurance is a policy that provides a financial death benefit for a specific period of time (term). Typically, term life insurance policies span for 10, 15, 20, or even 30 years, and are a fantastic insurance option to help financially secure one’s beneficiaries within a specific amount of time.
Term life insurance is generally much simpler to understand and less expensive when compared to other life insurance products, such as “Whole Life”. Some term insurance policies are able to be renewed before expiration, but depending on the policy, the renewal monthly premium may be higher.
The funds paid out by the insurance company for term life insurance policies are able to be used for any purpose by the beneficiaries; such as covering funeral costs, paying off unsettled debts, mortgage payments, vehicle payments, college tuition, and more.
Whole life insurance does exactly what the name implies, covers the insured for his/her/their entire life. Due to the fact that the policies span a larger window of time, the monthly premium tends to be a bit higher when compared to term policies.
One major advantage to whole life insurance policies is that they carry a cash value, which can function as a tax-deferred, interest accruing savings account. There is a specified rate of return you yield on your policy. In addition, you are able to borrow money from part of the premiums you’ve already paid, if you ever need some extra cash.
Universal life insurance is very similar to whole life insurance, as it’s meant to cover the insured for his/her/their entire life. However, there is a bit of flexibility with a universal life policy that you don’t find with whole life. These policies allow you to increase or decrease your monthly premiums, coverage amounts and death benefits as you see fit without having to be issued a new policy.
Like whole life insurance policies, universal life also carries a cash value, which can function as a tax-deferred, interest accruing savings account. There is a specified rate of return you yield on your policy, which can be subject to certain market interest rates. You are able to borrow money from part of the premiums you’ve already paid, if you ever need some extra cash.
Life insurance can be used as an investment vehicle, as it has many advantages. For one, it’s tax deferred, which means the cash value grows tax-free. Other advantages include tax-free dividends and tax-free death benefits to beneficiaries.
Retirement income can be generated with certain policies that have a cash value component, such as whole life and universal life.
As mentioned previously, there are a number of tax advantages to using life insurance as an investment vehicle. An important thing to note is that with most policies, the death benefit is tax-free, which helps preserve the value of one’s estate to the beneficiaries.
As you pay your premium each month, part of that payment goes to the cash value of the policy, which accrues over time. If you are ever in a tight spot financially, and need some extra cash for whatever reason, you are able to take out a loan using the cash value of your policy as collateral.
There are no credit checks, payments can be flexible, and the interest from the loan is added back to the total cash value. However, any outstanding balance will decrease your death benefit.