There are numerous choices on the market when it comes to selecting a life insurance policy that is right for you. Here, we’ll be discussing 3 types of life insurance packages that will help you protect your loved ones and business investments – term life insurance, universal life insurance, and business life insurance – along with the benefits and drawbacks for each.

The Benefits of Getting Term Life Insurance in 2022

Term life insurance lasts for a specified term or time limit after which the policy expires. For an affordable premium with your term life insurance, a term life package provides a considerable death benefit that your beneficiaries can opt to receive as a lump sum, a monthly stipend, or an annuity. An annuity pays out a portion of the death benefit per month while the remaining funds accrue interest as an investment with your term life insurance.

The average annual cost of a $500,000, 20-year term life insurance policy for a 40-year-old man is $225 and a 40-year-old woman is $186. Term life insurance is a good option for individuals who, for example, still have a mortgage or pay for their children’s tuition. A term life insurance policy ensures your family will be protected financially if you unexpectedly pass away. The drawback of such a policy, however, is the expiration date.

The Benefits of Getting Universal Life Insurance in 2022

Unlike term life insurance, universal life insurance is permanent and has both a death benefit and a cash value, which is an investment-style savings account. The premium payment goes toward both portions and varies by policy.

You can choose from (3) three types of universal life insurance: indexed universal life insurance (IUL), guaranteed universal life insurance (GUL), and variable universal life insurance (VUL).

Here are the 3 types of Universal Life Insurance:

• Indexed universal life insurance (IUL): The cash value portion of this policy is ideal for someone with a moderate risk tolerance , as the insurer guarantees a minimum floor based on a stock market index, such as the S&P 500. The downside is that there is a cap put on gains regardless of market performance; however, if you’ve reached your investment limits for other accounts, an IUL can be a great workaround.

• Guaranteed universal life insurance (GUL): For the risk-averse, a GUL policy can alleviate some anxiety, as cash value interest rates are fixed rather than tied to market performance. As long as you pay your premium, coverage is guaranteed.

• Variable life insurance (VUL): This option is great for the person with a higher risk tolerance as returns are tied directly to market performance. Most carriers offer a wide variety of funds to choose from with no ceiling on the gains.

The Benefits of Getting Business Life Insurance in 2022

As a business owner, protecting your business with insurance policies that cover property and casualty, workers compensation, and management liability is a given. You should also consider a business life insurance plan to cover a key person, partners if you have them, or as part of a buy-sell agreement.

Here’s what we mean:  

• “Key Person” coverage is a life insurance policy on an employee whose absence could cause your business to collapse, such as a head chef at an upscale restaurant or other vital individuals.

• Life insurance policies can be a crucial component in a business succession plan or buy-sell agreement. For example, if you plan to sell to a key employee down the line in order to retire, you may want a small policy on them to preserve your ability to retire if the employee suddenly passes before the sale is completed.

Still Aren’t Sure Which Policy Is Right for You? The Weiser Agency Can Help!

If you’d like some help in selecting the best life insurance policy for your circumstances, please contact The Weiser Agency. Our job is to protect your lifestyle – let’s talk at: 805-984-3777.