If you have a current life insurance policy, Riedmiller Wealth Management can provide you with a “policy review” to help determine if your policy is still providing the desired coverage. There could be other options which could be at a lower cost or provide you with better benefits.
Different types of life insurance are available to meet various needs. Here is a list of the most common types of life insurance policies:
This provides financial protection to the owner for a specific period of time (typically 10-20 years). With a traditional term insurance policy, the premium amount stays the same over the course of the coverage period, after which the policy may offer continued coverage (often at a higher rate). In general, term life insurance may be less expensive than a permanent life insurance policy.
Term life policies can be used to replace lost income during working years, which can provide a safety net for your loved ones and help them achieve their goals. Although term life insurance can be used to replace lost potential income, the benefits are delivered in one lump sum rather than regular installments.
This is a type of permanent life insurance that provides lifetime coverage. Universal life policies are often more flexible than whole life insurance policies and may allow you to raise or lower your premium payment amount or coverage over the course of your lifetime. Universal life insurance typically has higher premiums than term insurance.
Universal life insurance is often used as part of estate planning strategies to help preserve wealth transferred to beneficiaries. It may also be used for long-term income replacement in situations where the need extends beyond working years. Some universal life products focus on providing both death benefits and building cash value, while others focus on providing guaranteed death benefit coverage.
This is another type of permanent life insurance designed to provide lifetime coverage. Because of the lifetime coverage period, whole life insurance tends to carry higher premiums than term life insurance. Premium payments are usually fixed. Unlike term insurance, whole life insurance has a cash value, which can function as a savings component and may accumulate tax-deferred over time. Like universal life insurance, whole life policies can be used in estate planning to help preserve wealth transferred to beneficiaries.
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