Life Insurance

Tahoe Rim Wealth Advisors

At Tahoe Rim Wealth Advisors, we adhere to a data-driven three-step process to ensure success in all that we do for our clients. We create customized, comprehensive financial plans for each individual we work with. There are no two financial situations that are the same; therefore, each person requires a unique financial strategy. We are passionate about client education and host regular seminars. Joanna Moran CFP® AIF® CDFA® specializes in investment planning, life insurance, and divorce financial planning. With her experience and your goals, there is no limit to pursuing your financial success.

Life insurance is a contract between a life insurance company and an insurance policyholder. The insurer promises to pay designated beneficiaries a specified sum of money upon the insured’s death. The insured party pays the life insurance company premiums in exchange for the death benefit. The life insurance policy and life insurance rates vary depending on an array of factors. Namely, the amount of the death benefit will drastically change life insurance rates. Life insurance is vital because it provides you peace of mind and protects your family after your passing. When you pass away, your family is left with the cost of your death and any debts you owe, including a mortgage. It is possible to get affordable life insurance. An experienced independent advisor can help you find the life insurance policy that works for you at rates that do not sacrifice your budget.

Life Insurance Policy Types

There are four major types of life insurance: traditional whole life, term life, universal life, and variable universal life. Each type of life insurance comes along with many variations. However, each type has specific key differences in the nature of the policies themselves.

Traditional Whole Life Insurance Policy – A traditional whole life insurance policy provides coverage for the insured party for their entire life. Not like a term life insurance policy, which only provides coverage until a specific age limit. Traditional whole life insurance coverage does not expire or run out. Premiums on a whole life insurance policy usually will not increase. These policies build cash value. All whole life insurance policy guarantees are subject to the timely payment of all required premiums and the claims paying ability of the issuing insurance company. Policy loans and withdrawals affect the guarantees by reducing the policy’s death benefit and cash values.
Term Life Insurance Policy – Term life insurance gives the policyholder a guarantee of a death benefit for only a specified time frame or until a certain age. Unfortunately, term life insurance expires upon the end of the time period or when the policyholder reaches a certain age. It is quite possible to outlive your term life insurance policy. If a person outlives their term life insurance policy, they do not receive any money paid in premiums back. All premiums paid stay with the insurance company, and no death benefit will be paid. Term life insurance policies tend to be less complicated and generally have less expensive premiums.
Universal Life Insurance Policy – A universal life insurance policy is a kind of permanent life insurance with an investment savings component and generally lower premiums. It does build cash value like a traditional whole life policy, but the death benefits and premiums are flexible.
Variable Universal Life Insurance Policy – The variable universal life insurance policy tends to be a great option if people plan to use life insurance in their retirement income plan. It is a cash value life insurance product with investment options. If the cash value is invested wisely in a variable life insurance policy and investments perform well, the value can grow significantly faster than other life insurance products.
A Variable Universal Life (VUL) policy is considered both life insurance and a security and is sold with a prospectus. Premium and death benefit types are flexible. Its crediting rate is based on the performance of the underlying investment options provided in the policy. There is no guaranteed interest rate. This type of policy may lapse due to low or negative performance of the underlying investment options, inadequate funding, and increasing cost of insurance rates. See your policy prospectus for more information. Variable contracts are offered by prospectus only. Investors should consider the investment objective, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other important information, is available from your Financial Advisor and should be read carefully before investing.

Key Takeaways

There are so many options to consider when looking to purchase a life insurance policy. Depending on your current situation, future goals, dependents, life course, retirement plans, and so much more, one policy type may be a better fit for you than another. Like any other major financial decision, it is best to get your financial advisor involved in deciding which option is right for you. Our experienced financial professionals are here to serve you in all of your life insurance needs. Whether you want to provide peace of mind, ensure that your cost of burial and other death expenses are paid, pay off debts, or even provide a cash value in retirement, we will help you determine which life insurance policy will work for your unique situation.