Life Insurance

Prescott Insurance offers a full line of Life Insurance because many different options are necessary to offer the right coverage at the right time of your life. Often important changes help you to realize the importance of adequate financial protection in your life. Situations such as getting married, having a new child on the way or starting a new business help you to realize financial protection is very important. It is so important to take care of those who depend on you financially with the right insurance coverage.

The varied choices in selecting a life insurance plan are complicated but the fundamental concept is simple, you need financial stability for your family if and when you die. For families and individuals life insurance may be the most valuable purchase you make in your lifetime. The vast selection of life insurance products can be intimidating. Too many choices can deter some consumers from purchasing adequate coverage. The complicated nature of insurance can leave people feeling confused and many experience anxiety about what to purchase and how much to spend.

Our team of professionals will spend time learning about you and your situation to fine the life insurance plan to meet your needs. This is necessary in order to recommend the right product for you and your loved ones. We will ensure you clearly understand the difference in the various types of Life Insurance selections rather than confuse you. Life insurance helps ensure financial needs are met, even after you are gone. Deciding which type of insurance protection may be appropriate for you depends on how you want your life insurance to work for your family. An agent can help you determine the type and amount of protection you need.

Term Life Insuranceis life insurance that provided coverage for a certain period of time and pays a death benefit to the beneficiary(ies) only when the insured dies. The premiums are calculated on a scale that increases as the insured get older and the probability of death increases. Term life is sold in blocks of years such as a 20 or 30 year term. In exchange for your monthly premium, term life policies promise a death benefit such as $100,00, $250,000 or $500,00 depending upon the face value you selected. You will receive the value of the policy selected if you die before the end of the policy’s term. The policy does not build cash value and the premiums increase over time.

Universal Life Insurance is a flexible-premium, adjustable benefit life insurance policy that accumulates account value. The flexibility of this policy allows you to change the amount of insurance as your needs for insurance change. Some changes require underwriting approval. Universal Life Insurance provides both a death benefit payable when the insured dies and also has a cash value that can be used during their life. The premiums and life insurance coverage can be flexible. The cash values earn a fixed rate of return set by the insurance carrier and accrue inside the policy tax deferred.

Variable Universal Life Insurance is a type of life insurance, that builds a cash value. The cash value can be invested in a wide variety of separate accounts, similar to mutual funds. The owner has the option to choose the accounts to use. The 'variable' component in the name refers to this ability to invest in volatile investments similar to mutual funds. The 'universal' component in the name refers to the flexibility the owner has in making premium payments. The premiums can vary from nothing in a given month up to maximums defined by the Internal Revenue Code for life insurance. This flexibility is in contrast to whole life insurance that has fixed premium payments that typically cannot be missed without lapsing the policy. Variable universal life is also considered to be a type of permanent life insurance, because the death benefit will be paid if the insured dies any time up until the endowment, normally, about 100 years old as long as there is sufficient cash value to pay the costs of insurance in the policy.

Whole Life Insurance is Life insurance that remains in effect until the insured dies and is designed to provide lifelong protection. Whole life insurance builds cash value over the life of the policy for the policy owner. As long as premiums remain current coverage they should not decrease or increase. The policy is designed to protect the policyholder for his or her entire life. The premium is usually higher than that of a term life policy but in addition to a death benefit, whole life policies have a savings aspect to them and the policy accumulates cash value. This cash value can be withdrawn to pay for expenses or can be borrowed against but this should be for an emergency only. Your policy will require hefty interest payments if you borrow, which essentially means you are paying hefty interest to a company to borrow money from yourself.

Review your life insurance often, at a minimum we recommend an annually review. Changes in income, number of dependents and lifestyle are all things that can alter your life insurance needs. The policy you bought years ago may be collecting dust in a drawer somewhere but this is not an ideal situation for such an important part of your family’s financial protection. Remember, life is ever changing and the type of coverage you select today maybe the right choice for today but but as the circumstances in your life change so do your coverage needs.