Life insurance doesn’t benefit the person that dies; it benefits those who are the beneficiaries. One way to look at it is that you would take precautions to protect a financial asset that produces money consistently every month, so you should do the same for yourself and your employees. There are many types and many reasons to buy life insurance but you need to consider the needs of your family and how long they will need protection.
Broadly speaking, there are two types of life insurance; term and whole life. Term life insurance offers coverage for a specific number of years with a set premium. This is insurance against an event that may happen prematurely much like insuring your home or car and is cheaper than whole life. Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy.
At Kollmorgen and Associates we know that there are a lot of gray areas in life insurance that cause companies and individuals confusion. Its our promise to you to talk out the differences in the plans and decide what works out best. Many times it’s the preference of the employee and we can offer options to them as well. Call us today and we can talk on how to get started.