Choosing the life insurance policy that is right for you can be challenging without an
expert on your side — consult with Nate & Associates Insurance to determine the
best course of action for you and your family.
How much and what kind of life insurance do you need?
All life insurance policies have the basics in common but the details with each policy can differ exponentially. Get the guidance you need to make the smartest decision for you when you consult with our experts.
Find the best life insurance plan for your situation.
There are three major types of life insurance — term and whole life insurance. Whole life, also known as permanent life insurance, encompasses several subtypes, including:
- Term Life Insurance
- Whole Life Insurance
- Universal Life Insurance
Consult with our knowledgeable staff to weigh the benefits of each kind of life insurance and to determine the best course of action for your specific case.
Term life insurance
The term is the most popular type of life insurance for most people because it’s straightforward, affordable, and lasts only as long as you need it. Term life insurance is one of the easiest and cheapest ways to provide a financial safety net for your loved ones.
How it works:
Term life insurance lasts for a set number of years before it expires. You pay premiums toward the policy, and if you die during the term, the insurance company pays a set amount of money, known as the death benefit, to your designated beneficiaries. The death benefit can be paid out as a lump sum or an annuity. Most people choose to receive the death benefit as a lump sum to avoid taxes
Affordability — term policies are less expensive than other types of life insurance and generally have lower premium costs.
Length — the term has an expiration date, which can align with a mortgage or when your children graduate college. If you want lifelong coverage, you should opt for permanent life insurance instead.
Most life insurance shoppers. Those looking for cheaper life insurance for up to 30 years or longer should buy term life insurance
Whole life insurance
Whole life insurance is the most popular type of permanent life insurance because of its simplicity and lifelong duration. Its cash value — an investment-like, tax-deferred savings account — earns interest at a fixed rate.
How it works:
Whole life insurance has a guaranteed death benefit and cash value that earns interest over time. A portion of your premium goes toward the cost of maintaining the insurance policy and the rest goes toward the cash value account
Cash value & lifelong coverage — the cash value component can cover endowments or estate plans. And since this coverage lasts for your entire life, it can help support long-term dependents such as children with disabilities
Cost & complexity —a whole life insurance policy can cost five to 15 times more than a term life policy for the same death benefit amount. The cash value component makes whole life more complex than term life because of fees, taxes, interest, and other stipulations
High-net-worth individuals who need to diversify their investment portfolio and people with dependents who may need long-term care
Universal life insurance
Universal life insurance is a flexible permanent life insurance policy that lets you decrease — or increase — how much you pay toward premiums. If you decrease how much you spend on premiums, the difference is withdrawn from your policy’s cash value.
A universal life insurance policy can be a good fit if you’re looking for some flexibility in your life insurance — and you can afford that flexibility; a universal policy is more expensive and complicated than the standard whole life.
How it works:
Universal life insurance allows you to adjust your premiums and death benefit depending on your needs. If, after some time, you decide to stop paying or lower your monthly premiums, you can use the cash value to cover your premiums.
Flexibility — you can adjust your premiums based on your financial needs.
Investment risk — interest earned from the cash value is based on market performance, so it’s not the best option to save money for the future.
High earners who are trying to build a nest egg without entering a higher income bracket.