Why do I need life insurance?
Life insurance is about how you want to live your life right now and many years from now. It’s also about how your loved ones will live their lives when you’re gone. AMAC offers life insurance products through various top-rated reputable life insurance carriers to help protect what is important to you – whether it is to protect the assets you’ve worked so hard to attain, or to ease your family’s burden after you are gone. Life insurance helps to provide peace of mind for you and your family.
To Replace Lost Income
Most people buy life insurance as a means to replace income lost if something happens to them. Providing money for survivors is important. Life insurance is the most cost effective way to do it.
To Pay Off Debt
Debt can be very burdensome to your family, especially without your income available to help repay it. Life insurance can be used to pay off debt and help create more financial security for your family.
To Pay Final Expenses and Offer an Emergency Fund
Final expenses can be very significant, especially if there are large medical bills, funeral or legal expenses to pay. An emergency fund can cover unexpected bills such as emergency repairs to your home or car. Life insurance provides cash that can be used to help your family cope in a time of distress.
To Help Pay for Your Children’s Education
Educating children can be expensive and often requires a long-term strategy. Many people plan to contribute funds each year until they have enough money saved to pay all or some of their children’s education costs. Unfortunately if something unexpectedly happens to you, there may not be enough time to set aside adequate funds for education. Life insurance can help by creating a lump-sum of cash that you can count on to help pay part of your children’s education costs.
Types of Life Insurance
Term Life: Protects your family with a death benefit for a specific term or span of years if scheduled premiums are paid. If you die during the policy term, your beneficiary is paid the coverage amount subject to your policy terms. Since it provides “pure” insurance without any cash value accumulation, term life insurance coverage is generally less expensive initially than permanent coverage.
Whole Life: Considered “permanent insurance”, coverage is intended to remain in force during the Insured’s entire lifetime, providing premiums are paid as specified in the policy. A whole life insurance policy can build cash value on a tax-deferred basis. Both the premiums to pay and the cash values that result are predetermined and found in the policy contract. The cash value is an amount of money available to the policy owner for policy loans or as the surrender value if the policy is canceled and returned to the company.
Universal Life: Considered “permanent insurance”, UL policies offer a valuable death benefit and provide the opportunity to build cash values that you can borrow, or withdraw. If your Universal Life (UL) policy is in force at the time of the insured’s death, policy proceeds will be paid in accordance with the terms of the policy to the beneficiary. With certain limits, you can choose the premium you wish to pay and this determines how the policy values develop. UL is also an “interest sensitive” product, which means that the interest rates credited to policy values will change over time.