Although the cost of most things seems to go up over time, you might be surprised to discover that life insurance can be more affordable than you would expect, if you have not shopped for it lately. People are living longer, so life insurance has gotten more competitive. All the news about health insurance lately has made insurance companies streamline their policies to keep them affordable. Waxhaw Insurance Agency has a handful of financially strong companies they can shop for your individual needs.
Whole-life policies, a type of permanent insurance, combine life coverage with an investment fund. Here, you’re buying a policy that pays a stated, fixed amount on your death, and part of your premium goes toward building cash value from investments made by the insurance company. Cash value builds tax-deferred each year that you keep the policy, and you can borrow against the cash accumulation fund without being taxed. The amount you pay usually doesn’t change throughout the life of the policy.
Universal life is a type of permanent insurance policy that combines term insurance with a money market-type investment that pays a market rate of return. To get a higher return, these policies generally don’t guarantee a certain rate. The other type of coverage is term insurance, which has no investment component. You’re buying life coverage that lasts for a set period of time provided you pay the monthly premium. The annual-renewable term is purchased year-by-year, although you don’t have to requalify by showing evidence of good health each year.
When you’re young, premiums for annual-renewable term insurance are dirt cheap – as low as a few hundred dollars per year for $250,000 worth of coverage. As you get older, premiums steadily increase. Level-premium term has somewhat higher – but fixed – premiums for longer periods, anywhere from five to 30 years.
If you need an individual health insurance plan or health and dental insurance for your family, ask our knowledgeable agents to go over the options with you.