LIFE INSURANCE
What is Life Insurance and Why Is It so Important?
Life insurance is one of the most important tools for protecting your loved ones financially in the event of your passing. It ensures that your family won’t be burdened with financial hardship while they cope with the emotional loss.
A life insurance policy can cover daily living expenses, pay off debts, fund your children's education, and even help replace lost income.
Additionally, certain types of life insurance offer living benefits that can provide financial support if you face a serious illness or injury, helping you recover with less stress.
In short, life insurance offers peace of mind—knowing that you’ve taken the necessary steps to protect the people who matter most, no matter what the future holds.
STEP 1
See your options.
STEP 2
Pick the right options for you.
STEP 3
Apply and get approved
STEP 4
Enjoy peace of mind of knowing you have best plan
Types of Life Insurance
Term Life Insurance
Coverage: Provides coverage for a specific period (e.g., 10, 20, or 30 years).
Premiums: Generally lower and fixed for the term length.
Cash Value: None. It only pays a death benefit if you pass away within the term.
Best For: Those who need affordable coverage for a specific period, such as covering a mortgage or raising children.
Whole Life Insurance
Coverage: Provides lifelong coverage as long as premiums are paid.
Premiums: Fixed and higher than term life premiums.
Cash Value: Builds a cash value over time, which grows at a guaranteed rate. You can borrow against or withdraw from it.
Best For: Those who want lifelong coverage and cash value growth.
Universal Life Insurance
Coverage: Permanent coverage with flexible premiums and adjustable death benefits.
Premiums: Flexible; you can adjust the amount you pay within limits.
Cash Value: Grows based on interest rates set by the insurer, and can fluctuate.
Best For: Those who want permanent coverage with flexibility in premiums and death benefits.
Variable Life Insurance
Coverage:Permanent coverage with investment options for the cash value.
Premiums:Flexible, with the ability to vary the amount you pay.
Cash Value: The cash value is tied to the performance of investments (like stocks and bonds), so it can grow faster but with more risk.
Best For:Those who are comfortable with investment risk and want to potentially grow the cash value faster.
Indexed Universal Life Insurance (IUL)
Coverage:Permanent coverage with flexible premiums and adjustable death benefits.
Premiums:Flexible, similar to universal life insurance.
Cash Value:Tied to the performance of a stock market index (e.g., S&P 500), but with limits (a floor and cap) to protect against losses and limit gains.
Best For:Those who want a combination of flexible premiums, potential cash value growth tied to the stock market, and protection from market downturns.
Types of Life Insurance
Term Life Insurance
Coverage: Provides coverage for a specific period (e.g., 10, 20, or 30 years).
Premiums: Generally lower and fixed for the term length.
Cash Value: None. It only pays a death benefit if you pass away within the term.
Best For: Those who need affordable coverage for a specific period, such as covering a mortgage or raising children.
Whole Life Insurance
Coverage: Provides lifelong coverage as long as premiums are paid.
Premiums: Fixed and higher than term life premiums.
Cash Value: Builds a cash value over time, which grows at a guaranteed rate. You can borrow against or withdraw from it.
Best For: Those who want lifelong coverage and cash value growth.
Universal Life Insurance
Coverage: Permanent coverage with flexible premiums and adjustable death benefits.
Premiums: Flexible; you can adjust the amount you pay within limits.
Cash Value: Grows based on interest rates set by the insurer, and can fluctuate.
Best For: Those who want permanent coverage with flexibility in premiums and death benefits.
Variable Life Insurance
Coverage: Permanent coverage with investment options for the cash value.
Premiums: Flexible, with the ability to vary the amount you pay.
Cash Value: The cash value is tied to the performance of investments (like stocks and bonds), so it can grow faster but with more risk.
Best For: Those who are comfortable with investment risk and want to potentially grow the cash value faster.
Index Universal Life Insurance (IUL)
Coverage: Permanent coverage with flexible premiums and adjustable death benefits.
Premiums: Flexible, similar to universal life insurance.
Cash Value: Tied to the performance of a stock market index (e.g., S&P 500), but with limits (a floor and cap) to protect against losses and limit gains.
Best For: Those who want a combination of flexible premiums, potential cash value growth tied to the stock market, and protection from market downturns.
FUNCTIONS OF LIFE INSURANCE
FUNCTIONS OF LIFE INSURANCE
Death Benefit
A death benefit is the amount of money that a life insurance policy will pay out to the beneficiaries (the individuals or entities you choose) upon the death of the insured person. This benefit is typically tax-free for the beneficiaries and is meant to provide financial support or security to help cover expenses or lost income after the insured's passing.
Living Benefit
Living benefits in a life insurance policy refer to features or riders that allow the policyholder to access some or all of their death benefit while they are still alive. The idea behind living benefits is to help policyholders address financial needs during their lifetime, especially in the event of serious illness or injury.
Examples of Riders:
1. Terminal Illness Rider : allows the policyholder to access a portion of the death benefit if diagnosed with a terminal illness (usually with a life expectancy of 12-24 months).
Qualifying conditions:
> If an eligible insured is diagnosed with an illness or condition that is expected to result death within 24 months or less.
> Available on all rate class.
2. Critical Illness Rider : this rider provides a lump sum payout if the policyholder is diagnosed with a critical illness such as cancer, heart attack, stroke, or organ failure. The policyholder can use this benefit to cover medical treatments, living expenses, or any other financial needs.
Qualifying conditions:
> If an eligible insured is diagnosed with critical illness.
> Covered critical illness may include:
- Heart Attack
- Stroke
- Invasive cancer
- End-stage renal failure
- Major organ transplant
- ALS
- Blindness
- Paralysis
- Arterial Aneurysms
- Central nervous system tumors
- Severe disease of any organ(resulting in significantly altered life expectancy)
- Major burns (>40%BSA, 3rd Degree)
- Loss Limbs
3. Chronic Illness Rider : This rider provides access to the death benefit if the policyholder is diagnosed with a chronic illness that impairs their ability to perform certain activities of daily living (ADLs) (such as bathing, dressing, or eating), or if they have severe cognitive impairment like Alzheimer’s.
Qualifying conditions:
> If an eligible insured is unable to perform 2 of 6 activities of daily living for a period of at least 90 days or requires constant supervision to protect from threats to health or safety due to severe cognitive impairment.
> The ADLs include bathing, continence, dressing, eating, toileting, and transferring.
“As a cancer survivor myself, I can confidently say having a life insurance policy with living benefits changed my entire story.” - Nvard Gayanyan. Watch Nvard's story
Cash Accumulation
Permanent life insurance policies, like whole life or index universal life, accumulate cash value over time. This cash value can be accessed during your lifetime through loans or withdrawals. The cash value grows tax-deferred, meaning you don’t have to pay taxes on the growth while the funds are accumulating within the policy.
One of the most significant advantages of life insurance with cash value (especially permanent policies) is the ability to borrow against the cash value of the policy without triggering any taxable event. As long as the loan is not outstanding at the time of death (or the policy is not surrendered), the loan proceeds are tax-free.
The importance of starting early in one photo: (Click the photo to zoom)
WHICH ONE IS RIGHT FOR ME?
When it comes to life insurance, there is no "one-size-fits-all" solution.
The right policy depends on your unique needs, goals, and financial situation. Whether you're looking to provide income replacement, cover debts, fund your children's education, or protect a business, there are various types of life insurance that offer different benefits.
The key is to find the policy that best fits your long-term goals, budget, and family’s needs. A personalized approach ensures you get the protection you need without paying for coverage that doesn’t align with your goals.
WHICH ONE IS RIGHT FOR ME?
When it comes to life insurance, there is no "one-size-fits-all" solution.
The right policy depends on your unique needs, goals, and financial situation. Whether you're looking to provide income replacement, cover debts, fund your children's education, or protect a business, there are various types of life insurance that offer different benefits.
The key is to find the policy that best fits your long-term goals, budget, and family’s needs. A personalized approach ensures you get the protection you need without paying for coverage that doesn’t align with your goals.
Only Want to Cover Financial Expenses
⇩
Final Expense Policy
Low Budget or Temporary Need
⇩
Term
Do you want a Permanent Policy and don't mind paying as long as you need it?
⇩
Guaranteed Universal Life
Do you want to have cash value that you can borrow against if need?
⇩
Whole Life / Index Universal Life
“As a cancer survivor myself, I can confidently say having a life insurance policy with living benefits changed my entire story.”
- Nvard Gayanyan
FAQ
Do I need more then 1 policy? Can I have both Term and Permanent Insurance?
Having both term and permanent life insurance can provide a comprehensive approach to financial protection.
Term life insurance is typically more affordable and provides coverage for a specific period (e.g., 10, 20, or 30 years). It’s ideal for temporary needs, like covering a mortgage or providing income replacement while your children are still dependent. It offers peace of mind during key financial years when protection is most needed.
On the other hand, permanent life insurance (such as whole life or universal life) offers lifelong coverage and builds cash value over time. While it’s more expensive, permanent insurance can be a valuable long-term asset, as the cash value grows and can be borrowed against or used for future needs. It’s ideal for ensuring that your family is protected no matter when you pass away, and it can provide financial benefits that extend into retirement.
By combining both types of insurance, you get the affordability and flexibility of term coverage for immediate needs, along with the lasting protection and cash value growth of permanent coverage for long-term financial security.
Having Coverage Doesn’t Always Mean You Have the Right Coverage.
Just because you already have life insurance doesn’t necessarily mean it’s the right policy or the correct coverage amount for your needs. Over time, life circumstances change—whether it's starting a family, buying a home, or growing a business—your insurance should evolve with you. The policy you had when you first started may no longer provide the coverage you need to fully protect your loved ones or meet your financial goals.
Regularly reviewing and adjusting your life insurance ensures that you have the right amount of protection for where you are in life.
I have coverage through work, do I still need other insurance?
Having life insurance through work is a great benefit, but it may not always be enough to fully meet your needs. Typically, the coverage provided by employers is often a multiple of your salary (e.g., 1–2 times your annual salary). This amount may not be enough to cover your family's financial needs, such as paying off debts, covering living expenses, or funding long-term goals (like college for children or retirement for a spouse).
With employee sponsored insurance, if you switch jobs or lose your job, you could lose your life insurance coverage, leaving you without protection until you find new coverage. Many employer policies are not portable, meaning you cannot take the coverage with you if you leave the company. A personal life insurance policy can move with you, giving you peace of mind even if you change jobs or retire.
It is always recommended to have personal coverage outside to ensure you have all the living benefit riders as the one through work do not ensure that.
REACH OUT TO HAVE MY POLICY REVIEWED AND SEE IF THERE IS A GAP BETWEEN MY COVERAGE AND MY NEEDS : Book A Call
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