Life insurance gap.
Maybe you don’t have any life insurance, and you’re concerned that your family is vulnerable. Or maybe you have some life insurance, but you worry that it’s not enough to fully protect your family’s needs. The following products can help you fill the life insurance gap in your financial strategy.
Term life: The bodyguard of life insurance.
Like a bodyguard you hope you never have to use, term’s sole purpose is to protect your family or beneficiaries in case anything were to happen to you.
If you’re looking for some basic, straightforward protection, term may be the way to go. Pay your premium over the agreed upon term, and in return you’ll receive death benefit protection. Once the term is up, the policy is terminated. The bodyguard calls it a day.
The amount of death benefit your beneficiaries receive will depend on how much you purchase. Your financial professional can help you determine how much death benefit you need.
Term can help you prepare financially for the chance of being diagnosed with a qualifying illness.
In addition to offering death benefit protection, some term products may also include accelerated death benefits. These benefits allow the owner to access a portion of the death benefit while living, subject to eligibility requirements.
Term is usually the most affordable form of life insurance, often compared to the cost of a couple cups of coffee - much more affordable than a personal bodyguard.
Guaranteed universal life: Life insurance for the long haul.
Guaranteed universal life (GUL) insurance is similar to term in that its sole purpose is to provide death benefit protection, however, unlike term, GUL can provide you with guaranteed death benefit protection for the duration of your life (subject to premium payment requirements), or for the amount of time that you and your financial professional determine you need.
One of the best things about GUL is that the premium is fixed, so the amount you pay stays the same for your entire life, as long as you continue to meet the minimum payment requirements on time to maintain the guaranteed level premium. A missed or late payment can affect the guaranteed premium.
If you’re looking for death benefit protection for the long haul, GUL may be right for you.