Freedom Life Insurance is making it easy for families and businesses to understand the sometimes complicated world of life insurance. People generally understand what life insurance is, but they don’t always grasp the ways that it can work effectively for them.
Life insurance is a wonderful product as people can create an instant estate for just pennies on the dollar.
Life insurance is available in two forms, term life insurance and permanent life insurance. Term life insurance is temporary in nature as it only is in effect for a certain period of time and then it expires so that there is no more coverage.
Permanent life insurance lasts as long as a person is still living even if it is until age 100 when the policy “endows” or pays the policy owner the face amount of the policy.
Term insurance is the least expensive of the two due to its temporary nature. It is used for coving large needs for a large amount of coverage that will not necessarily last forever.
Instances where there is a young family with children, but as the children grow up and leave the home the need for coverage is not as great. Covering a mortgage and other short-term debts are other examples where term life insurance would be appropriate.
Permanent life insurance is used for longer lasting needs such as final expenses and business needs such as retirement. Permanent life insurance has a cash value which is actually a reserve that is placed in the policy to offset the continually rising mortality risk as an insured gets older each year.
The cash value of a permanent life insurance policy can be borrowed by the policy owner and if the insured dies, the death benefit is reduced by the amount of the loan. If and when the loan gets paid back, the original death benefit is restored.
The experienced life insurance agents of Freedom Insurance are experts in the planning and construction of custom designed planning and personal attention to clients needs in this area.
Learn more about Freedom Life Insurance: