Life Insurance Policy
Do you have life insurance? If not, contact New Way Financial to learn about our life insurance options.
Sign Up for a Life Insurance Policy
The 2024 Insurance Barometer Study discovered that over 50% of Americans have life insurance policies. However, it also found that about 100 million Americans don’t have life insurance or have life insurance policies that don’t provide enough coverage.
Do you have a life insurance policy? If not, New Way Financial is here to help you select the life insurance policy that makes the most sense based on your assets, income, and liabilities. See why you should take advantage of our life insurance options below.
What Is Life Insurance?
A life insurance policy is an agreement made between an insurance company and a policyholder that ensures a policyholder’s beneficiaries will remain financially secure in the event of their death. The typical life insurance policy works like this:
- You pick out a life insurance policy and begin paying premiums.
- A life insurance company agrees to pay a death benefit to your beneficiaries following your death.
- Your beneficiaries collect a death benefit from the insurance company and use it to cover funeral costs, mortgage payments, etc.
Insurance companies have offered life insurance for hundreds of years, but there are a few different types of life insurance available. Choosing the right life insurance policy is paramount.
Understanding the Different Types of Life Insurance
The different types of life insurance policies to choose can make it challenging to buy a policy. Not everyone knows the difference between term life insurance, whole life insurance, and other options. Read through our brief breakdown of what the main types of life insurance offer.
Term Life Insurance
Term life insurance provides coverage for a specific length of time. Those with term life insurance policies often receive coverage for 10, 20, or 30 years.
With a term life insurance policy, you can decide:
- The term you want
- The coverage amount for your policy
- The monthly premium you’ll pay for coverage
If you die during the term you choose, your beneficiaries will automatically receive a death benefit.
Whole Life Insurance
Whole life insurance, or permanent life insurance, provides coverage for the remainder of your life. You’ll just need to stay on top of paying your premiums on time to keep coverage intact.
When you sign up for whole life insurance, the life insurance company will offer a fixed monthly premium payment and death benefit. They won’t ever change unless you stop making life insurance payments. You can also earn a cash value accumulation and borrow against it.
Universal Life Insurance
Universal life insurance is another type of whole life insurance. It provides the same benefits as whole life insurance with one notable exception — your monthly premiums and death benefit won’t be fixed. You can adjust them over time.
Universal life insurance will also offer a cash value accumulation. But unlike whole life insurance, the interest rates for universal life insurance will change based on the fluctuating market.
Why You Need Life Insurance
The interest in life insurance among Americans reached a new high recently, and it’s easy to see why. A life insurance policy can:
- Provide financial security for beneficiaries after you die
- Deliver a death benefit to cover your final expenses
- Offer tax advantages for estate planning
Let New Way Financial Provide You With the Right Life Insurance Policy
According to the aforementioned 2024 Insurance Barometer Study, over 40% of Americans admit to not knowing enough about life insurance. If this sounds like you, no problem — allow New Way Financial to show you the best life insurance policies.