Life Insurance

Who needs life insurance? Typically, people purchase life insurance for one of two reasons: They either owe money to someone or they love someone.

If either of these describe your situation, the next question is often “How much is enough?” The answer can be simple in some cases and very complicated in others because everyone’s situation is unique. A recently married couple with no children has different needs than a family with two small children who would need time to be nurtured and money later on for education.

To understand how the appropriate amount of Life Insurance is calculated as well as the issues considered, visit Under the “Calculator” menu, click on the “Life Insurance” calculator. This will allow you to input different variables to get an idea what is right for you based on what is important to you.

There are different kinds of Life Insurance contracts. Below is a brief description of the major categories:Term Life Insurance: This type of coverage provides life insurance at a fixed premium for a specified time period. These plans may be convertible to permanent life insurance plans in the future. Reasons to purchase term life insurance include paying off student loans, providing income to the family, paying consumer debt/mortgages and providing education funding for children.Advantages: You can get a lot of coverage for lower premiums compared to a permanent life policy.

Permanent Life Insurance: This type of coverage gives you protection that you cannot outlive. These types of policies allow you to build cash value. Many people will choose permanent life insurance so that they can not only take care of their family if they die too soon, but also have money set aside for themselves for retirement/emergency fund.

The different types of permanent insurance are:

  • Whole Life Insurance: This coverage provides guarantees for the death benefit and the cash values. A Mutual company (one without stockholders) also will provide dividends that are added to the policy to increase the guaranteed cash value and ultimately increase the amount of guaranteed death benefit.

Advantages: Provides guarantees for both death benefit and cash value. Cash value builds up on a tax-deferred basis.

  • Universal Life Insurance: This coverage provides permanent protection for the death benefit and allows flexibility in premium payments. This is attractive for people who may want to put more money into their accumulation fund in some years and reduce or eliminate premium payments at some point in the future.

Advantages: Flexibility in premiums as well as death benefits. Cash value builds on a tax-deferred basis.

For more information, email us at, call: 608.442.3810 or use this online contact form.