Life insurance can be one of the best financial investments you make. Financial Investment Team (FIT) has the experience, industry knowledge, and dedication to help you choose the insurance policy that is right for you and your family. Whether you are just starting to look into purchasing a policy or want your current policy reviewed to make sure it still meets your needs, FIT is here to help.
It’s never too early to start thinking about life insurance. As life changes, so do the risks. Whether you’re a young adult just starting out or settled into adulthood with a family to care for, it’s important to plan how expenses will be paid in case the unexpected occurs.
The Difference Between Term and Permanent Life Insurance
One of the most common questions about life insurance involves the difference between term and permanent policies. With a term life insurance policy, an individual is covered for a specified length of time, generally 10, 15, or 20 years. At the end of the coverage term, the individual has the option to renew the policy for the same term or a different length of time. A term policy is generally cheaper because the coverage period is shorter. However, the individual would need to requalify for insurance at each renewal.
In contrast, a permanent policy covers the individual for their entire life as long as premiums are paid and only requires the insured to qualify once. These policies include an investment component which builds cash value over time that, provided certain conditions are met, can be withdrawn or borrowed against.
Life Insurance Policy Types
Term Life Insurance
Term insurance is protection only for a stated period of time. The price, amount, and time length of coverage varies depending on the type. Some term policies may be converted into permanent policies.
Whole Life Insurance
Whole life insurance provides protection for the entire life of the insured and builds up cash over time that can be available to the policyowner should they need it. Just as with term insurance, there are different types of whole life insurance that vary the cost and coverage amounts
Universal Life Insurance
Universal life insurance is a form of permanent insurance that gives policyowners the flexibility to adjust cost, coverage, and cash value to meet their goals. However, they do not get to direct the investment of the cash value.
Variable Life Insurance
Variable life insurance is a form of permanent insurance that allows the policyowner to direct the investment of the cash value. This is the riskiest type of insurance as the policyowner bears all investment risk.
Long Term Care Insurance
Home care and similar service expenses that arise after an accident or illness occurs continue to rise. Unfortunately, health insurance and Medicare lack adequate coverage to help pay for these long-term care expenses often creating a tremendous financial burden. Financial Investment Team (FIT) can help you find a solution to this potential problem.
Long term care insurance provides coverage for home health care, nursing home care, adult daycare services, and assisted living for individuals with a chronic or disabling condition. A typical health insurance or Medicare policy will have time limits or other restrictions to coverage for long term care that often requires individuals to pay out-of-pocket for these expensive services. Long term care insurance provides coverage beyond health insurance or Medicare, lessening the financial burden.
Who Needs Long Term Care Insurance?
Unfortunately, long term care may be needed at any point in life due to a chronic illness, unexpected health issues, or a disabling accident. Due to this, long term care insurance is beneficial at any stage in life.
Long term care insurance policies can be custom tailored to meet your specific needs. The professionals at Financial Investment Team will go over all options with you and help you determine which options best meet your insurance goals.
For more information on insurance planning services,
contact FIT today.