A Life Insurance Introduction

A life insurance policy provides a financial contract between an insurance company and a policyholder. Some of these contracts pay a specific sum of money to the beneficiaries at the policyholder’s death. Others provide a death benefit plus a cash value account that lets the policyholder save money pre-tax.

Two Main Types of Life Insurance

You can find two types of life insurance — whole life and term policies. Ashley Insurance, serving Easton, MD, offers both types. A whole life policy requires the policyholder to pay premiums regularly, whether monthly, quarterly, or semi-annually. One type of whole policy requires only a lump-sum premium payment to fund it.

A term policy provides a death benefit to the beneficiary if the policyholder dies during the term and requires premium payments only during the years of the policy term. These terms typically last for 10, 20, 30, or 40 years. While term policies all essentially work the same way, whole policies include a great deal of variation. 

How Whole Policies Vary

Most whole policies provide only the death benefit, but you can obtain a whole policy with a cash value component. Some of these cash value accounts contribute a portion of the monthly premium, while the other portion goes into a savings account. Some of these savings accounts provide a specific interest rate, while others earn in an investment account. The investment account may use a money market format, or it might link to an index fund.

Once only used by high-income earners, cash value accounts now provide options for those making normal incomes. You can obtain a cash value account with a death benefit of $70,000.

These cash value whole life policies provide a pre-tax method of saving. Many of the policies guarantee a certain interest rate or earnings minimum. You can borrow against them for loans or withdraw from them while you continue to pay the premiums. In some cases, this temporarily reduces the death benefit of the policy. It increases again once the policyholder repays the loan or withdrawals. The whole life policies with cash value accounts include universal life, guaranteed universal, variable universal, and indexed universal.

Contact Ashley Insurance, serving Easton, MD, for more information on life insurance and how to obtain coverage. Let us help you obtain the policy you need to provide for your beneficiaries.

What type of life insurance is best for me

Life insurance is something you do for your family. But few people know a lot about it. Many people get a life insurance policy as part of a benefits package from their employer, and they leave it at that. This is not really a good idea, especially if you are the type who likes to change jobs every few years. If you have to take over the payment yourself when you leave your job, you will likely be paying more than you need. Getting a new policy as you get older gets more expensive. At Ashley Insurance in Easton, MD, we are a locally owned independent agency dedicated to getting you the best insurance for the right premium. 

Deciding what type of life is best for you depends on a couple of things. Your age, how long you want your policy to last, and do you want to have more than just a death benefit. 

Term Life

Term life insurance has a period of being active. It only lasts for a given number of years. When the term of your policy ends, the policy is gone. Some term policies allow you to extend the term, but if it is 20 years later, you won’t be paying the same amount you did when you took it out. The premiums are affordable and if you need a large amount to protect a growing family, this is a good option. 

Whole Life

Whole life insurance lasts for your whole life. It earns dividends, and it allows you the option to borrow from the accumulated cash value. It is an easy way to save while getting protection, but it cost more than term life. 

Both types of life insurance have benefits and drawbacks, and you probably should have both as part of your financial plans. Talk to the team at Ashley Insurance in Easton, MD to discuss your life insurance needs. Come into our office or give us a call for a no-obligation quote.

How Can Life Insurance Protect Me in Maryland?

When you think of life insurance in Easton, MD, your first thought might be that it’s designed to protect your loved ones should something happen to you. Whether it’s your spouse, parents, children, or other loved one, you’ll know that they’ll be taken care of even if you’re not there to help. But Ashley Insurance wants you to know that there are a wide variety of policies, some that may be able to help you should you need it somewhere down the road. 

Permanent Life Insurance Policies 

Many permanent life insurance policies come with the option for you to use your plan as an asset rather than just a standard insurance plan. If you need to borrow from your life insurance, should you need it for an unexpected expense (e.g., home repairs, grandchild’s education, etc.), you can secure a policy that will help. Many people will use this as a safety net along with the rest of their portfolio. It’s an excellent way to augment your worth and diversify your interests. 

Find Out More 

If you’re interested in learning more about which plans are available, what will happen if you need to use them, and how they will help your loved ones after you’re gone, Ashley Insurance is here to help the people of Easton, MD start getting the answers they need. Unlike term policies, which will run out of time and expire, a permanent life insurance policy is available for as long as you need it.

Don’t hesitate to give us a call if you’re looking to upgrade your policy, or you’re just shopping around for a quote. We help people from all walks of life start making the long-term plans that keep them secure well into their Golden Years.