There are various Life insurance products on the market. Having a clear understanding of each can help you determine which is the right fit for you, your family or other beneficiaries. Two of the most popular Life insurance products are Term and Permanent (or Whole) Life. There are several factors that impact what type of policy you purchase, including your current age, health status, your family’s financial needs, age of your children, mortgage and current debts, what retirement plans you have in place, your family’s future needs (college tuition), estate planning, and charitable donations, among others.
Arroyo specializes in providing individuals with both of these products and can help you decide what policy is best for you. Here’s an overview of each to help you gain a better insight of the differences between each policy.
As you move through the different phases of life – from buying a house to starting a family – the amount and type of Life insurance you need changes. You may be young and need coverage to help your family meet its obligations in the event of your untimely death. Term Life insurance in this case can be a good fit for you to help meet your current needs. Some of the features of a Term policy are:
Permanent Life insurance is often purchased by people to cover financial needs that they will still have very late in life, after the typical Term Life policy would have expired. It can be used to fund business buyouts so that a family business or the insured’s stake in another business doesn’t have to be sold off, but rather can be bought out by the next generation. It can also be used to help beneficiaries pay taxes on what they inherit from the insured.
Some people use Permanent Life insurance to fund trusts for grandchildren or to leave a legacy gift to a favorite organization or charity. Others use smaller Permanent Life policies just to make sure there is enough money in the pipeline to pay off any debts and all final expenses. Some of the features of a Permanent Life policy are: