The Freedom Life Insurance Company takes great pride in offering information to clients about how to determine client’s needs and how to arrange that they purchase the right kind of life insurance to cover those needs.
There are basically two kinds of life insurance that is available to families and businesses. Term life insurance is temporary coverage which expires at the end of the term. Term life can, however be programmed to last as much as 30 years.
Permanent life insurance does not expire thus its name as permanent. It is also called whole life because it lasts for the “whole” of a person’s life. Permanent life insurance has a cash value that accumulates over the period of the life of the policy. The cash value may be borrowed by the owner of the policy, or paid to the owner if the policy is surrendered.
Life insurance planning takes into account the unique features of both term and permanent life insurance, and the Freedom Life Insurance Company works with clients in the implementation of both types of policies.
For example young families need lots of coverage but they normally are not able to spend lots of money for high premiums. So it is logical for a family in this situation to buy a lot of term in case the breadwinner, or breadwinners were to die prematurely.
On the other hand an older person may wish to have a permanent policy to be available for final expenses and retirement by using the cash value.
In business situations, permanent life insurance is more often used to fund key man policies, deferred compensation, partnership buy and sell arrangements, and corporate buyout plans. The cash values of permanent policies become an asset of the company and can be used for short-term cash needs, and then replaced.
For example in a deferred compensation plan the business strikes an agreement with a key employee that if he dies, a certain amount will be paid to his estate or beneficiary of choice. When he retires, then he will get a certain income for life. All of this is funded with a permanent life insurance policy. The Freedom Life Insurance Company is there to help make all of the arrangements. Read more about Freedom Life Insurance at https://www.ushealthgroup.com/sbc.aspx