Life insurance is an important product for people to understand and know how to apply it to their personal situation. Life insurance is a product unlike any other because an individual can create an instant estate with a stroke of a pen and very little financial outlay as compared with the payoff should that individual die.
There are two different forms of life insurance that people need to understand. Term life insurance covers a person for a “term” or a number of years, then it expires. Because of the short nature of the life of the policy itself, the pricing is the least expensive of the products. Freedom Life Insurance offers both of these options.
Permanent life insurance lasts for the whole of the person’s lifetime, thus the alternate name of “whole life.” Permanent life insurance, or whole life lasts until an individual is age 100, and then it “endows” or pays the owner of the policy an amount of money equal to the death benefit, also called the face amount of the policy.
A whole life policy also has a cash value that accumulates inside of the policy. This is actually a reserve that is kept and added to each year to offset the growing mortality possibility each year of the insured dying. The cash value can be borrowed from time to time and repaid. If the insured dies while there is an outstanding loan, then the death benefit is simply reduced by the amount of the outstanding loan.
The cash value can also be made available if the owner surrenders the policy back to the insurance company and then the cash value is paid to the policy owner. Premiums for permanent policies remain the same, while term life premiums will increase as a person gets older.
Most insurance planners, such as Freedom Life Insurance agents will incorporate both term and permanent coverage so as to take advantage of the low price of the term to provide lots of coverage, and the guarantees of the permanent policy to have some insurance coverage when an insured person gets older.
Term life coverage is usually used when a young family requires lots of death benefit, and permanent coverage is required as a person gets older for burial insurance coverage. Your Freedom Life Insurance agent can design just the right plan to fit the needs of families and businesses. Read more on Freedom Life Insurance:https://www.corporationwiki.com/Texas/Fort-Worth/freedom-life-insurance-company-of-america-3543239.aspx