The first goal of life insurance is, and always will be, to protect your loved ones against financial hardship in the event of your passing. But today’s life insurance policies go well beyond simple death benefits. In fact, life insurance instruments can be a big part of your lifestyle. They can be a central part of a financial plan that gives you resources and flexibility during your life. From inexpensive term insurance to multi-featured permanent life policies, your Allied Insurance agent is an expert at matching coverage to your individual needs.
Term Life Insurance
Term insurance provides a specified death benefit during a specific time period, typically 10, 20, or 30 years. It is one of the most affordable ways to protect your loved ones against catastrophic financial damage should the policyholder die within the term of coverage.
While term insurance doesn’t build cash value, some policies allow conversion to permanent life insurance, sometimes without requiring a medical exam. Term insurance can be used for a number of things besides offering a nest egg for survivors. It can also provide for:
Permanent Life Insurance
Permanent life polices come in three forms: Whole Life, Universal Life, and market-based Variable Universal Life. Each type of policy offers specific benefits and can be an important part of your life’s financial plan. Unlike term insurance, permanent life policies remain in effect as long as the premiums are paid. They also have a cash value beyond their death benefits, and this value can increase over time, often growing to a considerable sum that is accessible for immediate needs similar to a savings or investment account. Like a savings account, though, accessing the funds can decrease the policy’s death benefit and may require additional premiums to keep the policy in force. Your Allied agent will explain the various features and benefits of permanent life insurance and help you choose the policy that best suits your needs. Permanent life policies fall into three general categories.
Whole Life: Simple protection for the long term
Whole life policies offer a guaranteed death benefit with premiums that remain the same over the life of the policy. They are a straight-forward and conservative way of gaining protection while building cash value. Some of the features of a whole life policy are:
Universal Life: Protection and flexibility
Besides a guaranteed death benefit, a universal life policy can offer flexible premium payments and death benefits as long as certain policy minimums are met. Your policy premiums become part of the insurance company’s investment portfolio and have growth potential based on the performance of that portfolio. Universal life features include:
Variable Universal Life: Market-based coverage with added growth potential
Variable universal life insurance (VUL) offers the benefits of universal life protection with the ability to add underlying investments to increase the value of the policy. The insurance company builds a portfolio of various investments not available publicly and offers VUL policy holders the opportunity to invest in them. Earnings from those investments are paid to policyholders based on the portfolio’s performance. Like most other investment vehicles, VUL policies can have associated operating costs. Beyond the benefits of universal life policies, variable universal life offers policyholders:
*Tax benefits such as tax-free distributions and deferred tax payments will vary depending on individual circumstances and tax policies in effect at the time. Your Allied agent will discuss how these benefits can apply to your individual circumstances.
Life insurance policies are available to cover a wide variety of personal financial circumstances. Carefully consider your protection needs and investment objectives, then contact your Allied Insurance investment professional to discuss which policy type best addresses them. Our agents are standing by to help you get the peace-of-mind that comes with personalized life insurance protection from Allied.
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Allied Insurance at The Insurance Loft
1630 Welton St. Ste. 202
Denver, CO 80202
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