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Apart from business and health insurance, AW Elliot & Associates offers life insurance for individuals in the Inland Empire and surrounding areas. Read the information below to learn more about the types of life insurance we offer.

Term Life Insurance

This is life insurance that you pay for during a specified period of time or term, generally 1-30 years. You choose the amount of the death benefit or face amount to meet your needs.

Premiums, which can be the same amount or increase with time, must be paid monthly, quarterly, semi-annually, or annually. If you pass away during the term of coverage, your policy’s face amount will be paid to your beneficiaries.

Term insurance policies don’t accrue cash value. Therefore, they typically offer lower premiums than other life insurance products of the same face value.

Universal Life Insurance

Universal life insurance is permanent and has the potential to accumulate cash value. It also offers extra features and choices. For instance, you can raise or lower your policy's face amount to accommodate your protection needs that change

You can also increase or decrease your premium payments’ dollar amount and make extra lump sum payments to your policy. Since a universal life policy accumulates cash value, you can borrow against this cash value for whatever purpose.

Skip premium payments is an option if your account has accrued enough value because the premiums will be taken from the accumulated value. A universal life policy also has the potential to earn a higher return rate than a whole life policy, although there is a risk of your return rate dropping.

Whole Life Insurance

You own a whole life insurance for the rest of your life. The amount of the death benefit or face amount can be chosen to meet your needs.

Premiums are fixed and can be paid monthly, quarterly, semi-annually, or annually. Your policy accrues a cash value that grows on a tax-deferred basis as more premiums are paid. Essentially, whole life insurance is similar to buying a house versus renting it.

The monthly expense is higher than it would be for a term life policy, but with each payment you make, you earn equity. For any purpose, you can borrow against a whole life policy. However, loans require you to pay interest. Any borrowed amount you don’t pay back is deducted from the payout to your beneficiary at the time of your death.

Final Expense Insurance

When you’re gone, final expense insurance will help provide the money your family may need to pay necessary bills such as medical bills, funeral expenses, and legal fees. This insurance policy also gives you control over how your assets will be distributed.

By planning ahead, you can help protect your loved ones from unwanted financial stress. You can also ensure that your assets will be divided according to your wishes.

How Much Life Insurance Is Enough?

The purpose of a life insurance policy is to determine how much your dependents will need after you’re gone. In choosing the face value of your life insurance, it helps to consider the following:

  • How Much Debt You Have: All your debts must be paid off in full. If you have mortgage and a car loan, your policy needs to be able to cover both, plus interest.
  • Income Replacement: This will be a major determinant of your policy’s size. If you’re the only provider for your dependents, you will need a policy payout that’s enough to replace your income, including a little extra to cover inflation. Ideally, adding your yearly income back into the policy is fairly safe to guard against inflation. Remember, you have to add this amount to whatever your total debts add up to.
  • Future Obligations: If you want to pay for your child’s college education, you will have to add this to the amount of coverage you want.

Once you’ve identified your insurance company’s required face value, you can begin shopping around for the right policy and a good deal.

You may be wondering if you need to insure important people in your life. The rule of thumb is that people whose death would bring financial loss to you would be the only ones that you should insure. If you have a spouse or partner who also contributes to the family income, then it would be rational to go through the same exercise to determine the policy’s face value.

Do you need assistance in choosing the right type of insurance for you and your family? Contact us today! Our help would be at no cost to you.

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