There is no greater disparity in understanding of any product or service between those in the industry and those who are not, than with the product of Life Insurance. Perhaps that's because life insurance is one of the most customizable products ever sold. Most people are familiar with the basic differences between temporary insurance like Term Life designed to cover an insured's risk of dying during a specifically defined period and the more permanent types of protection such as Whole Life which provides protection for up to 120 years or less, depending upon when an insured dies. And, while it's known that life insurance pays named beneficiaries a benefit, there are as many "reasons" for purchasing life insurance as there are people who need it.
Life insurance has many different options, as stated earlier, and financial planning professionals usually recommend a combination of permanent and term life insurance. Term insurance is pure protection and has the lowest cost of all life insurance products. Don't confuse lowest cost; however, with the lowest total cost of ownership over a particular period, as permanent types of insurance have a cash value component with guaranteed interest rates which often pay better rates of return than money market mutual funds or financial institution certificates of deposit. Permanent insurance, like Whole Life is favorable for final expenses while Universal Life, a very flexible form of permanent life, is used in situations where saving for long term goals is desired and affords greater flexibility than Whole Life. Covering the largest amount of debt by the most affordable means, such as to pay off a mortgage or to provide income for survivors is best implemented with Term Life protection.
In the Employee Benefits market Group Life and Accidental Death & Dismemberment (AD&D) insurance is widely offered and has come to be expected by prospective employees looking for a career home. These products differ from Individual Life policies in that the coverage is "owned" by the employer and rates which are determined by a greater pool of participants, can be "blended" with regard to sex, tobacco use, or other factors resulting in premiums which are typically lower than that offered to individuals. These rates are usually age-banded and usually increase every 5 years as compared to individual term products which can offer periods of 10, 20, or even 30 years without rate increases. As an employer don't put yourself at risk of having surviving family members of your deceased employee seek financial assistance from you or your company...an unfortunate fact which occurs all too frequently, when you can affordably avoid this emotional and financial strain by offering Group Life and AD&D as an employee benefit of your organization.
Our Benefit Consultants can help you determine the best life insurance product, or combination of insurance products to address both known and some unknown risks for individuals, families, and businesses. Alliance Insurance Group even has a staff specialist for handling large life, executive life cases efficiently and discreetly with the experience and understanding of what insurance carriers accept which, less than favorable risks. Call us today to schedule a meeting.