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What is the best life insurance to buy?
The simple answer is that it depends on your short and longer term needs and preferences for flexibility and risk. There are two kinds of life insurance - term life insurance and permanent insurance. These are two very different kinds of protection that satisfy many very different life insurance needs.
I offer a range of life insurance products that can provide temporary or permanent coverage or a combination of both. Together, we can determine your needs and decide which product is best for you.
Individual life insurance
Freedom 55 Financial offers you access to a range of life insurance products that can provide protection for you and your family. Together, we can determine your needs and decide which product is best for you.
Permanent life insurance - as the name implies - protects you for your lifetime. It can build cash value and provide a death benefit. Permanent policies have the potential for earning policyowner dividends. You choose how you want to use your dividends. The most common uses are to buy additional permanent coverage each year to offset inflation, or to buy a combination of term and permanent coverage, which can make a larger amount of coverage more affordable.
Universal life provides permanent life insurance with a tax-advantaged investment component. As cash values accumulate, they can be used to pay part or all of the cost of insurance or to increase the death benefit. This type of policy is generally non-participating and is attractive for people who want to actively manage their life insurance policy.
Term life insurance is well suited to meeting high, short-term protection needs for the lowest initial cost.
For example, a couple with young children and/or a mortgage might select term insurance as an affordable way to obtain the coverage they need today.
Many term plans are renewable after 10 or 20 years without providing proof of health. The price will increase to be appropriate for your age at renewal, and the increase in premium can become substantial in later years. Coverage ceases for the majority of term contracts once you reach the age of 75 or 80.
Many term insurance plans do a good job of meeting immediate needs and provide the freedom to later convert to a permanent insurance product without providing proof of health. However, this ability to convert to permanent insurance often expires around age 65 or 70.
When purchasing term insurance, it's important to understand what renewal and conversion options you have.
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