Walker & Associates: Protecting What Matters Most
Life insurance offers much more than protection for your family in the event of an untimely death. It also serves as a financial planning tool that can be used to build value, perpetuate wealth, provide for an heir’s college education, protect a family business or establish a bequest for a charity. At Walker & Associates, our financial services expert will meet with you to discuss your goals and financial plan to help determine what type of Life insurance product makes sense for you.
We also understand that your needs change over time, so what was appropriate when you were young won’t be what’s best at retirement. We’ll discuss the advantages of each product we offer and how those products fit into your wealth plan. Whether you are in the accumulation phase, maintaining assets or drawing down, we can advise you on the best products available and their most effective combinations.
Types of Life Insurance Plans
Individual Life insurance products provide you with flexibility and control. We offer several types of Life policies, including Term Life, which offers straight insurance coverage for a specific term. We also can provide you with a policy that has an investment component, such as Whole Life or Universal Life, so that you have the benefit of permanent coverage along with a cash-value feature and borrowing options. In addition, we provide Group Life insurance for businesses to offer to their employees.
Term Life Insurance
Often the least expensive option, Term Life insurance offers a solution for those who have large financial protection needs but only for a specified time. Young families typically purchase this type of policy as the starting point for their financial plan. Term Life plans allow you to choose the length of the policy’s life – typically up to age 65 or as low as five years. They also provide options for benefits: Some policies allow you to increase coverage at certain points during the policy’s term; others pre-set a scheduled decline in benefits as you age. Each option affects premium prices differently, so they should be considered in light of their costs and benefits.
Term Life is widely used to ensure that dependents will have an income should the primary earner die prematurely. Benefits can be used to pay the mortgage or other bills or finance college for children, among many other things. The benefits proceeds can even be placed into a trust for the controlled use by beneficiaries.
Whole Life Insurance
Whole Life insurance combines a Term policy with an investment component. Traditional Whole Life insurance relies on insurance company dividends as the source of accumulation inside the policy. These policies are often used to assist beneficiaries to fund a business buyout or pay estate or capital gains taxes on inheritance so properties can be kept in a family. Universal Life holders invest by using sub-accounts, which are like mutual funds, inside the policy.
Whole Life Insurance earnings grow on a tax-deferred basis, and you may borrow against your cash value. Some permit you to change premium payments based on the accumulation of value in the policy, and some permit you to alter the death benefit during the course of the policy period.