1520 Huguenot Rd., St 115, Midlothian, VA 23113
Many financial experts consider life insurance to be one of the most important tools in sound financial planning. There are 2 types of life insurance - term life and whole life.
Term insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy and generally has no other benefit provisions. There are 2 basic types of term life insurance - Level Term & Decreasing Term.
• Level Term means the death benefit stays the same throughout the term of the policy.
• Decreasing Term means that the death benefit drops usually in one year increments over the course of the policy.
Whole life insurance pays a death benefit when you die. There are 3 major types of whole life insurance - Traditional Life, Variable Life and Universal Life.
With traditional whole life, both the death benefit and the premium stay the same throughout the life of the policy. The cost per $1000. of the benefit increases as the insured individual ages. The insurance company could charge a premium that increases each year but that would make it very difficult for most people to afford life insurance in their later years. So the company keeps the premium level by charging a premium that, in the early years, is higher than what's needed to pay claims, investing that money, and then using it to supplement the level premium to help pay the cost of the life insurance for older people.
Universal life insurance is a variation of whole life where the excess of premium payments above the current cost of insurance is credited to the cash value of the policy.
Variable life insurance is another variation of whole life that contains an investment component. The policy has a cash value account, which is invested in a number of sub accounts available in the policy.
Give us a call at (804) 794-7620 to discuss the best option for you.
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Tuesday - 8:30 am - 5 pm
Wednesday - 8:30 am - 5 pm
Thursday - 8:30 am - 5 pm
Friday - 8:30 am - 5 pm