Life Insurance
Basics of Life insurance
Life insurance helps provide peace of mind by giving you some financial protection for the life you’re building—and the most important people in it.
Life insurance policies fall into the two broad categories of temporary insurance (term life insurance) or life insurance that lasts your entire life (permanent life insurance).
Most frequently asked question: Do I need a separate policy if I already have one through work?
Typically, yes. Your employer-provided life insurance policy offers a base level of financial protection, but isn’t designed to meet 100% of your needs.
If you switch jobs, you may lose your coverage. An individual life insurance policy stays with you. If your life changes, you’ll have the flexibility to change the amount of coverage you have and how much you pay.
Here’s how the two main types of life insurance policies work, and what they offer:
Term Life Insurance
- How It Works
- Lasts until a certain age or for a certain time period (anywhere from 1 to 30 years).
- When the term is up, you can renew your policy or let it end.
- Benefits
- Provides tax-free money to your l0ved ones when you die. They can use it to help cover your final expenses, pay off a mortgage or as additional income.
- Tends to be less expensive than permanent insurance.
- May be able to be covered to a permanent policy.
Permanent Life Insurance
- How It Works
- You can't outlive coverage, as long as you pay your premiums.
- Offers different policies, so you can customize your coverage to meet your needs. The four main types of policy options are:
Whole Life: You pay a fixed premium (monthly or annual payment) and get a fixed death benefit (the amount of money provided when you die) for life. The policy also accumulates cash value, which you can use during your lifetime.
Universal Life: Offers a flexible premium and death benefit. This means you can change the amount you pay (and the amount of coverage you have within limits) if you need to. Most of these types of policies accumulate cash value.
Indexed Universal Life: Provides many of the same benefits as a universal life policy, with one key difference -- the way interest is credited to the cash value of the policy. Instead of being a fixed rate, the interest is based on stock market indexes. This means it potentially could accumulate more cash value over time.
Variable Universal Life: Combines the flexible premium and death benefit of universal life with the performance of investment accounts. Because these policies rely on investment performance, they may accumulate more or less cash value than standard whole life or universal life policies.
- Benefits
- Most policies build cash value. A portion of the premium pays for the cost of the coverage and any remaining amount accumulates cash value. That money grows over time and can be accessed using withdrawals or policy loans, or used to reduce future premiums.
- Permanent policies offer tax advantages. In addition to providing tax-free money when you die, they also offer a way to grow your money faster in a tax-deferred account (the cash value). When done correctly, cash withdrawals from the policy general aren't taxed, either.
- The cash value can be used in your lifetime (while still providing a benefit when you die). It can supplement your retirement savings, or help pay for things like medical expenses or your kids' college education.
- You control when and how you take payments from your policy. There's no early withdrawal penalty, no required distributions and payouts won't lower your Social Security benefit.
Life Insurance
Basics of Life insurance
Life insurance helps provide peace of mind by giving you some financial protection for the life you’re building—and the most important people in it.
Life insurance policies fall into the two broad categories of temporary insurance (term life insurance) or life insurance that lasts your entire life (permanent life insurance).
Most frequently asked question: Do I need a separate policy if I already have one through work?
Typically, yes. Your employer-provided life insurance policy offers a base level of financial protection, but isn’t designed to meet 100% of your needs.
If you switch jobs, you may lose your coverage. An individual life insurance policy stays with you. If your life changes, you’ll have the flexibility to change the amount of coverage you have and how much you pay.
Here’s how the two main types of life insurance policies work, and what they offer:
Term Life Insurance
- How It Works
- Lasts until a certain age or for a certain time period (anywhere from 1 to 30 years).
- When the term is up, you can renew your policy or let it end.
- Benefits
- Provides tax-free money to your l0ved ones when you die. They can use it to help cover your final expenses, pay off a mortgage or as additional income.
- Tends to be less expensive than permanent insurance.
- May be able to be covered to a permanent policy.
Permanent Life Insurance
- How It Works
- You can't outlive coverage, as long as you pay your premiums.
- Offers different policies, so you can customize your coverage to meet your needs. The four main types of policy options are:
Whole Life: You pay a fixed premium (monthly or annual payment) and get a fixed death benefit (the amount of money provided when you die) for life. The policy also accumulates cash value, which you can use during your lifetime.
Universal Life: Offers a flexible premium and death benefit. This means you can change the amount you pay (and the amount of coverage you have within limits) if you need to. Most of these types of policies accumulate cash value.
Indexed Universal Life: Provides many of the same benefits as a universal life policy, with one key difference -- the way interest is credited to the cash value of the policy. Instead of being a fixed rate, the interest is based on stock market indexes. This means it potentially could accumulate more cash value over time.
Variable Universal Life: Combines the flexible premium and death benefit of universal life with the performance of investment accounts. Because these policies rely on investment performance, they may accumulate more or less cash value than standard whole life or universal life policies.
- Benefits
- Most policies build cash value. A portion of the premium pays for the cost of the coverage and any remaining amount accumulates cash value. That money grows over time and can be accessed using withdrawals or policy loans, or used to reduce future premiums.
- Permanent policies offer tax advantages. In addition to providing tax-free money when you die, they also offer a way to grow your money faster in a tax-deferred account (the cash value). When done correctly, cash withdrawals from the policy general aren't taxed, either.
- The cash value can be used in your lifetime (while still providing a benefit when you die). It can supplement your retirement savings, or help pay for things like medical expenses or your kids' college education.
- You control when and how you take payments from your policy. There's no early withdrawal penalty, no required distributions and payouts won't lower your Social Security benefit.
Our Competitive Edge
In today's fast paced, highly technological world, the amount of choices one faces is seemingly endless. Spending money has never been easier, making it more important to save and invest than ever before.
In order to devise an effective, wealth-building strategy, it is essential to analyze the most important aspects of one's financial life. Our team customizes strategies based on the unique needs of the specific client, taking into account who and what are driving money-related decisions. Utilizing our years of experience and industry expertise, Campos Financial Group goes the extra mile to truly understand our clients' needs and then build a portfolio designed to promote future success and growth.
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Our Competitive Edge
In today's fast paced, highly technological world, the amount of choices one faces is seemingly endless. Spending money has never been easier, making it more important to save and invest than ever before.
In order to devise an effective, wealth-building strategy, it is essential to analyze the most important aspects of one's financial life. Our team customizes strategies based on the unique needs of the specific client, taking into account who and what are driving money-related decisions. Utilizing our years of experience and industry expertise, Campos Financial Group goes the extra mile to truly understand our clients' needs and then build a portfolio designed to promote future success and growth.
contact us
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ONLINE | PHONE | IN-PERSONOur consultations are 100% confidential and commitment-free. Initial consultations are generally 30-45 minutes in length. We discuss a general overview of your financial picture, goals, investment and financial planning needs.Click below to request your complimentary consultation today.
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BOOK A FREE CONSULTATION
ONLINE | PHONE | IN-PERSONOur consultations are 100% confidential and commitment-free. Initial consultations are generally 30-45 minutes in length. We discuss a general overview of your financial picture, goals, investment and financial planning needs.Click below to request your complimentary consultation today.
GET STARTED