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  • Arize Financial & Insurance Group

What Type of Life Insurance is Right For Me?

Protect Your Family Before It’s Too Late

You’re a hard worker and want to make sure the things that are important and valuable in your life are well-protected.

You DESERVE to have these things protected.

If you have a car or a home, you purchase insurance in case the unexpected were to happen. Car crash, busted pipe, house fire? Without insurance, damage to a home or a car could be a big financial hit.

So what about the more precious and invaluable things in your life like your family members? How do you protect them?

Because you love your family, you work hard to earn money for a roof over their head, food to eat, education for your little ones, etc.

But, what if you were to get injured, terminally ill, or pass away?

Would your family be financially secure?

Sadly, If this pandemic has shown us anything, it’s that life is unpredictable.

But, the good news is, there are sure ways to be prepared.

Life insurance is a great way to ensure your family is protected right now and in the future. Depending on your specific needs, life insurance can help you grow your money, protect it, and cover you and your loved ones if things take a turn for the worse.

There are many different types of life insurance that you need to know about. It’s important to choose the right fit that caters to your specific financial needs.

But first…

What is Life Insurance?

When someone purchases life insurance they enter into a contractual agreement with a life insurance company. The person purchasing life insurance wants to make sure that when they die, they can leave money to a person of their choosing (also known as the beneficiary).

The insured person makes a monthly payment called a premium and in exchange, the insurance company pays out a set amount of money to the beneficiary when the insured person dies. This money is called the death benefit. The death benefit is typically tax-free.

Life insurance can be permanent and last until the end of your life or expire after a certain amount of time.

Now, let me tell you about some of the different types of life insurance:

What is Term Life Insurance?

With Term Life Insurance, coverage is not permanent but is set for a certain amount of time ranging from 10 to 30 years.

Generally, the monthly payments are lower than other forms of life insurance because term life insurance has an expiration date. During the duration of the policy, the premium and the death benefit do not change. Although the policy expires, you do have the option to renew it or convert it to a permanent policy.

Who is Term Life Insurance best for?

Term Life Insurance is best for those looking for a more budget-friendly option. It guarantees that the beneficiary does not feel your loss financially, but instead replaces the income you would have continued to make. This helps ensure expenses will still be paid; expenses such as a mortgage, the cost of raising children, paying for the kids’ college tuition, etc.

Typically, by the time the term expires, paying off such expenses would no longer be needed.

What Is Whole Life Insurance?

With Whole Life Insurance, there is the guarantee of the death benefit and premiums that do not increase. Whole Life Insurance premiums are typically more than term.

Whole life insurance is a permanent form of life insurance. Additionally, whole life insurance has a cash value that could grow tax-free at a guaranteed rate that you can borrow from.

Who is Whole Life Insurance Ideal for?

Whole Life Insurance is best for when you want to distribute all your wealth and assets after passing. It can be used to cover the same expenses that term insurance does but also used when extra cash is needed.

What Is Indexed Universal Life (IUL)?

Indexed Universal Life is similar to whole life insurance in that it is permanent and accumulates a cash value that can grow tax-free. The difference is, this cash value grows interested based upon the rising of the stock market. When the stock market goes up, interest is added to your cash value.

“Stock market? So it’s a risky investment? What if I lose all my money when the stock market goes down..or CRASHES!”

Don’t worry, you can have a goodnight’s sleep knowing your money is safe.

One of the great things about an IUL is that if the stock market goes down, although you don’t earn money, your money is locked in and secure.

The policyholder can also adjust their premiums and coverage if their financial needs were to change.

Who can benefit from Indexed Universal Life (IUL)?

Indexed Universal Life is best for those wanting whole life insurance but to also invest and grow money tax-free. You can use an IUL as an emergency fund, a college fund, savings account for large purchases, a retirement fund. The choice is up to you.

What Is Final Expense Life Insurance?

Funerals these days can be quite costly and an expense that many are not prepared for. To cover costs, (while they should be taking the time to grieve) many people occupy their time trying to raise funds for the funeral.

Final Expense Life Insurance (AKA burial insurance) is a whole life policy designed to cover smaller final expenses like funerals. The death benefit payout is usually smaller.

Who is Final Expense Life Insurance ideal for?

Final Expense Life Insurance is best for those that are looking to have- well quite literally- their final expenses paid for. Final expenses can look like costs of cremation, funeral, caskets; things of that nature, rather than replace one’s income.

When someone is older and not in the best health, it can be hard to get insured. With this insurance, you can qualify to bypass medical questions, an exam, or medical records.

So we’ve talked about life insurance and preparing for one’s passing, but what about taking care of yourself in the event of extreme illness, injury, or a terminal diagnosis?.

What Is a Living Benefits Rider?

Living Benefits Riders are policy add ons that can be customized to your living needs. Adding riders to your policy can help you gain early access to your death benefit when facing certain circumstances. Such circumstances can look like receiving a terminal, chronic, or critical illness diagnosis, suffering an injury, or becoming disabled.

Who can benefit from Living Benefits Riders?

Living Benefits Riders are best for when medical expenses get too high, you get a disability and are unable to work, or unable to perform simple daily activities due to an illness.

Medical bills can create a lot of stress for you and your family. Living benefits riders provide protection so you have that financial weight lifted off your shoulders.

Life is unpredictable, but knowing if you and your loved ones are secure doesn’t have to be.

To see which type of policy is right for you and your family click below:



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