Did you know that September is National Life Insurance Awareness Month? Life insurance is one of the key plans you need to take part in. R&R Insurance offers numerous life insurance services that you might want to consider as you grow in your life. Whether its term life insurance, whole life insurance, guaranteed universal life insurance, keyman life insurance, disability insurance, and long-term care insurance. To learn more about each, keep reading below!
1. Term Life Insurance
As stated in its name, term life insurance is typically for a set term between 10-30 years. This type of life insurance is generated at a set level rate which earns no cash value but pays in full towards death benefits. This is the least expensive type of life insurance, and oftentimes, it can be referred to as “pure life insurance.” This policy is put in place for a specific amount of time, and only during that term is when dependents are insured. However, if you pass away unexpectedly, the beneficiaries on your policy will get the remaining payout.
2. Whole Life Insurance
Similar to life insurance, whole life insurance provides a full death benefit through the end of life while earning cash value, which entails that your premiums will be lower and fixed for life. The cash value will continue to grow tax-deferred. Depending on your financial situation, borrowing money against your whole life insurance policy is an option, however, as with any loan, you will accrue interest that will need to be paid. Otherwise, consequences include reduced death benefits (Source: NerdWallet).
3. Guaranteed Universal Life Insurance
Guaranteed Universal Life Insurance is a permanent life insurance policy. This type of policy has a fixed rate for individuals, including guaranteed death benefits until age 120 with no cash value. This type of policy guarantees protection for life at an affordable cost and is more flexible than whole life insurance policies. A great way to look at guaranteed universal life insurance is as a combination of whole life insurance and term life insurance.
4. Keyman Life Insurance
This insurance type is primarily for business partners, as it offers each of the above three types of life insurance policies and sets up what is called a perpetuation plan which allows for protection of the employer from the financial impact coming from a potential employee death. Keyman life insurance is insurance for the main person (or people) of the business, such as the owner, founder, or partners. Keyman life insurance is extremely important to have within a business because should the main person or people of the business pass away, the company will soon follow without insurance. With keyman life insurance the company is able to continue growing, as it can use the payout from the insurance policy to cover things in the meantime.
5. Disability Insurance
Disability insurance is used to cover 60% of a person’s earnings should they become disabled short term or long term for a specific period of time. Disability insurance comes in two forms (short term and long term) and each of these offers different amounts of an individual’s salary depending on how long they are unable to work. However, in order to receive the benefits, the individual must be disabled for a specific amount of time, called an elimination period.
6. Long Term Care Insurance
These types of insurance policies create more ability to aid for nursing homes or facility care if or when necessary. Typically, this type of insurance policy is not covered by health insurance, Medicare, or Medicaid. Typically, this type of insurance policy will cover senior living care, adult day care, respite care, etc. Oftentimes, long term care insurance will pay for home care depending on the coverage you purchase within the policy.
As you can see, each of these policies has different sectors for the different types of situations as life goes on. Whether it is a policy for whole life insurance, potential disability as a result of an accident, or long-term care insurance, R&R Insurance is your go-to for life insurance coverage.
As we mentioned above, September is National Life Insurance Awareness Month. If you are interested in learning about your options for life insurance policies and what each entails more in-depth, we would be happy to take your questions and speak with you on the phone.
Give us a call at 706-991-9832 or shoot us an email at info@rrinsurancegroup.com
Sources:
https://www.nerdwallet.com/blog/insurance/what-is-the-difference-between-term-whole-life-insurance/
https://www.entrepreneur.com/article/56068
https://www.investopedia.com/terms/d/disability-insurance.asp
Related blogs:
https://rrinsurancegroup.com/2018/12/20/2018-12-20-insurance-to-cover-you-during-the-trials-of-life/