Individual Life Insurance Protection
The lifestyle that you and your family will live in the future is up to you and will certainly depend on how you plan for it. At Security Mutual, we can take some of the guesswork out of the planning process.
Life insurance is a complex financial tool that is designed to provide an amount of cash for your family or others upon your death. With the variety of options available in the market today, you are faced with a number of decisions. When contemplating life insurance, you may wonder:
- How much coverage is needed to fulfill my needs and objectives?
- Is my need permanent or temporary?
- What type of policy will help me reach my goals?
Your individual circumstances will determine the right policy to fit your needs.
Whether you are planning for your family’s financial security, your child’s education, your retirement or estate preservation, our highly qualified life insurance representatives will be happy to help you find the right solution for you.
If you would like to locate a Security Mutual Representative in your area, click here to find a representative or please feel free to contact us. To help determine how much life insurance you may need, try our Life Insurance Needs Calculator.
Whole Life Insurance
Permanent insurance, fixed premiums, guaranteed death benefit and cash value growth.
Whole life insurance provides death protection for the whole of life. Typically the policyowner would pay the same premium for as long as the insured should live. Premiums can be several times higher than premiums you would pay initially for the same amount of term life insurance, but they are smaller than the premiums you would eventually pay if you were to keep renewing the term life insurance policy until the insured’s later years.
Although you pay a higher premium initially for whole life than for term life insurance, whole life policies develop cash values which may be available to the policyowner.
Additionally, the policy’s cash value can be used as collateral for a loan. If the policyowner borrows from the policy, interest is charged at the rate specified in the policy. Any money owed on a policy loan is deducted from the benefits upon the insured’s death, or from the cash value if the policyowner surrenders the policy for cash.
Universal Life Insurance
Permanent insurance, with flexiblity to change premiums, payments and death benefit options.
Universal Life has several unique features not found in whole life policies. Specifically, the policyowner is provided with the flexibility to vary the timing and amount of premiums and the face amount, depending upon present needs.
Cash values are a function of past and present premium payments, interest crediting rates, mortality charges and expense charges. The interest rate credited to the policy cash value is based on current rates of interest, subject to a stated guaranteed minimum interest rate. In addition, current mortality and expense charges are deducted from the accumulation value, but the only guarantee is that these charges will not exceed certain maximums. As a result, the policyowner bears more of the risk of adverse trends in mortality and expenses than if a traditional whole life insurance policy were purchased. On the other hand, if the insurance company’s mortality costs and expenses improve, the policyowner may benefit through lower charges.
Term Life Insurance
Affordable, simplified insurance for a specified period of time.
Term life insurance provides death benefit protection for a term of one or more years. Death benefits are paid only if the insured dies within the specified term of years. Term life insurance typically provides the largest immediate death benefit for each premium dollar.
Most term life insurance policies are renewable for one or more additional years even if the insured’s health has changed. Each time the policy is renewed for a new term, premiums increase.
Term life policies generally contain a conversion feature. This enables the policyowner, prior to the final conversion date, to exchange the term life policy for a permanent plan of life insurance such as whole life or universal life, without evidence of insurability. Premiums for the new policy will be higher than what the policyowner had been paying for the term life insurance.
Survivorship Life Insurance
Permanent insurance for two people. Benefits are paid to the beneficiaries after the second insured passes away.
This is one policy that covers the lives of two insureds, typically a married couple. The death benefit is payable only when the last of two insureds dies. Typically this policy type is used to provide liquidity to pay estate taxes when the second spouse dies. Other uses of this form of life insurance include: to protect dual income families, to provide key person business insurance, to replace an asset gifted to charity and to fund a business buyout.
Because of the timing of the death benefit payment, the premium charges for survivorship life insurance plans are generally lower than those of comparable single life plans.