Each life insurance company that we represent, is unquestioned in stature and financial stability. Each of our companies has an A+ rating. Among our companies are Travelers, New England, Unum Provident, CNA, Kemper, Zurich, and Savings Bank Life. You can be assured that we surf the market for a best quote. Our advantage is that our service is professional and personalized.
You may notice that we represent Savings Bank Life Insurance (SBLI). This is unique since not even the widely advertised national quoting services have this affiliation. The fact that we can use and compare SBLI coverages on your behalf, demonstrates our capabilities and independence.
In this portion of our website, our approach is to touch on the types of life insurance, and the basic purposes. Certainly we all try to save and invest for future needs. However, what happens when a death of an income provider or a business partner occurs before the plan is financially completed? Let us first look at the types of life insurance.
Types of Life Insurance
Term Life Insurance is pure protection coverage which exists for a limited number of Years. The duration of the coverage is chosen at the outset. At the end of the "term", the policy expires. If the insured is fortunate and is still living, many policies may be extended prior to the end of the policy term. Term Life has no cash value in the policy while the insured is living, only death value. Conversion to a permanent policy is also possible.
Permanent Life Insurance has death value protection like term coverage. The added feature of permanent coverage is that it has cash value. The policy can stay in force as long as the insured person wishes. The premium does not increase, but is greater than the premium of the same amount of "term" life coverage. Because there is cash value in permanent coverage, the eventual net cost is less than "term".
Variable Life Insurance is a combination of "term" death value coverage, permanent life insurance with cash value, and the use of the cash value to be invested in mutual funds of the insured's choice for a potentially greater rate of return. The risk is greater, but the potential reward has merit.
Purposes of Life Insurance
Personal - Some examples -
A house mortgage is a significant debt if the income provider dies. Term life that tracks the reducing value of the mortgage, can pay off the mortgage when the insured dies. An educational fund for the children can guarantee the funds needed in the event of a premature death, when savings and investments are not yet complete. Saving for retirement on a systematic investment basis is a sound approach. However, if the savings are incomplete, a surviving spouse may be left with less funds than needed. If the income provider has been financially successful, and has accumulated even reasonable wealth, the estate may need some cash liquidity to pay estate taxes and costs. Life Insurance can be the solution.
Business - Some examples -
Partners in a business own a share in the value of the business. It is advisable for the partners to have a legally drawn buy/sell agreement. It states the value, and that the surviving partners will pay the estate of the deceased, a sum equal to the value of his or her ownership. Life insurance on each partner, assures the funds necessary to pay the heirs for the deceased's interest in the business.
Stock Redemption is a plan for a privately owned corporation. Each owner is a stockholder. The stock should be valued in a written agreement. In the event of the death of a major stockholder, the corporation buys back the stock of the deceased from his or her estate on a pre-established, agreed-upon price. Life insurance on the major stockholders provides the funds to buy back the stock, and provide funds to the heirs of the stockholder.
If a key employee of a business dies, there is oftentimes significant expense to replace that individual. Advance funding of that potential expense, with life insurance on the employee, can provide the bridge to accomplishing a highly qualified replacement.
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