Life insurance has technically been around for thousands of years. In Roman times the military put together a fund to help pay for the burial of soldiers and even helping the loved ones of soldiers killed. It wasn’t until the late 1700’s that actual companies were formed to provide coverage for individuals. In the early 1900’s many Americans starting seeing the value in life insurance and it got to the point where there were more insurance policies sold than population in the US.
Life insurance has basically two types of insurance: Permanent and Term.
Many people call permanent insurance “Whole Life” but whole life is an actual type of plan that has been around for over a 100 years. Another type of permanent policy is called Universal Life. This is a newer model that uses different ways to help a policies cash value and death benefit grow. Whole life is based on the dividends the insurance company is paying at a specified interest rate. Universal Life can be based on the carrier’s specified interest rate, off the stock market which is Variable Universal Life (VUL) or the S & P 500 called Indexed Universal Life (IUL).
Both of these ideas are great ways to put money into a plan that will give your family protection if something were to happen to the insured or as a way to have cash down the road. There are many great permanent policies and it all depends on what you feel is best for you after sitting down with a licensed agent.
Term insurance is a contract with a carrier for a specific time period “Term” for a specific coverage “death benefit.” Once you hit the end of your term you can continue paying for the coverage you had but usually at a much higher rate. You can decide to not pay and the policy is no long “in-force.” Term is a great way to get a higher death benefit at a much lower rate. Many people don’t realize how affordable term life insurance can be and never ask the question. Term life is a great way for a family to help protect them in the event one parent was to pass away so they can stay in their home, the kids can still go to college and the other parent can continue to stay home or working the same job. We have a very simple equation at our agency we like to use to come up with a minimum coverage for our customers. 10x your gross income + your debt = the minimum coverage suggested. This doesn’t take into account how many kids and their future. This does not involve if you want to give some to charity. There are a number of other things going into how much coverage an individual should have and these are all great questions you can ask one of our agents.
At Corwin Insurance we have teamed up with some of the most experienced brokers in the country with multiple A+ rated companies and have years of experience with life insurance plans. We are not just an insurance office selling auto insurance. We want to protect everything that is important to you!
*The statements above are for reference and are written by a licensed insurance agent as a quick reference guide to make understanding insurance easier. If you have questions please don’t hesitate to reach out to any one of our licensed agents here at Corwin or refer to your policy documents.