Life Insurance
The value of Life insurance
Life insurance can be used for a variety of financial planning purposes, including:
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Provides payment at the death of the insured
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Paying for the education of surviving children
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Helping your spouse and surviving children maintain their lifestyles
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To ensure the continuation of a business after the death of a key owner or employee
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Life insurance is used in many personal, business and philanthropic contexts.
There are four primary types of life insurance, and each has a place in any sound financial plan. The four variations of life insurance are:
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Term Life Insurance: This kind of policy will maintain a certain premium for a distinct time period, like 10, 20 or 30 years. After which you can opt to continue coverage with a premium that increases annually. This is the most inexpensive kind of life insurance because it’s based on a fixed time period, but know that it doesn’t generate any cash value.
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Whole Life Insurance: Lifetime protection that offers a guarantee on the death benefit and guaranteed cash value for a guaranteed premium (also tax free). This is often one of the most expensive kind of life insurance, but may pay dividends (refunds of unneeded premium) that can be used in a variety of ways.
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Universal Life Insurance: More expensive because these products offer a cash value and are tax free. Also, you have the option of borrowing against the policy. Universal Life Insurance is more flexible in that you can adjust the premiums paid per month, useful if your income varies over time. You just have to ensure that you pay enough to keep the policy valid and in effect. There may be a death benefit option that can either increase or reduce the death benefit as needed
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Equity Indexed Universal Life: Is a form of whole life insurance which includes an investment portion where your earnings are tied to a market index. Cost is higher than whole life, but there is "potential" to have more over long-term since it does have some tie to the stock market.
Contact Asta Insurance Group today to review your needs and options and get you competitive quotes for the right life insurance for you.