If someone depends on you financially, chances are you need life insurance.
While a life policy won’t ease the emotional pain of losing a loved one, it will prevent the added stress of financial difficulties while coping with the loss. Life insurance policies are designed with different needs in mind. Whether you are an individual looking for a way to provide for your loved ones financially after your death, or a small business partner in need of a smart business continuation plan in the event of a death, we can provide you with a policy that provides you with security and peace of mind. As your life changes, your life insurance coverage needs may change. We offer a wide variety of coverages, which allows us to update and adapt your policy to provide the protection that is right for your current and future needs.
Individual Life Insurance
Getting married? Buying a house? Having a baby? Planning for retirement? Are you supporting an aging or disabled relative? Sending a child to college? These life events are all valid reasons to look at taking out a life insurance policy.
Life insurance can be used to provide protection for a specific period of time or to build cash values on a tax-deferred basis that you can borrow against during your lifetime. Your own personal financial needs and goals will dictate what type of plan is best for you and your family.
Planning for your family’s financial future in the event of your untimely death is crucial. If you died tomorrow would your spouse be able to pay the bills? Would you be leaving your heirs with a large amount of debt? Would your child still be able to attend college? By purchasing a life insurance policy you can fulfill obligations and promises to your family even when you are no longer living.
Rabbett Insurance Agency can walk you through the different types of policies offered and help you decide what coverage is right for your particular situation. Our product portfolio includes:
- Term Life Insurance
- Permanent Life Insurance
- Whole Life
- Universal Life
- Variable Life
- Variable Universal Life
Business Life Insurance
Aside from taking care of your family, life insurance can also protect your business. Every business has assets that its owners want to protect from loss. Buildings, equipment, and automobiles are examples of business assets. However, an asset that is sometimes overlooked in a business is its employees who are vital to the success and operation of the company.
You are a partner in a company. If you died tomorrow what would happen to the business? Would the surviving owners have the funds to buy your interest in the business? Does your heir have the experience to take over your duties in the operations of the business? Or would your heir be forced to sell his/her share in the company? If so, would he/she receive a fair price? If you and your partners had a life insurance policy that funded a buy-sell agreement these questions would already be answered for you. A policy such as this ensures that the surviving partners have the funds to buy your interest in the business from your heirs at a price that has already been agreed upon by you.
You are a small business owner. Your only sales representative, who generates 80% of your revenue, dies suddenly. What happens to your customers’ confidence in your company? How long will it take to find a replacement, and then for the new employee to produce at the level of your deceased sales rep? Key employee life insurance protects you from the financial loss your business incurs when a key person to the “life” of your business dies. A policy can provide the business funds to keep running smoothly while finding a replacement, which in turn, assures your customers and your creditors that the business will continue operations as usual.
Permanent Life Insurance
Permanent life insurance provides protection throughout your lifetime as long as you continue to pay your premiums in full. Most permanent life insurance policies build cash value for you to use for expenses later in life like paying off a student loan or purchasing a new car. Cash value is an attractive part of many permanent life insurance plans.
- Whole life policies are the simplest and have the strongest guarantees of any type of life insurance. Whole life policies allow for the accumulation of cash value on a tax-deferred basis, which can be used when you need it. Your cash value will build slowly and steadily, but as your cash value increases you’ll see it grow faster.
- Universal life policies have flexible features that can be customized for you and your loved ones. The flexibility of universal live coverage allows for changes to the death benefit and the size and timing of the policy’s premium, to an extent. So as changes to your life take place so can your coverage. Your tax-deferred cash value account accumulates at least the guaranteed rate of interest, but may accumulate at a higher rate depending on current market rates. Meaning, you may receive more cash value than expected or you may get none at all. Consult with our professionals about overfunding to make sure your universal life policy has cash value.
- Variable life is a permanent life insurance policy with a cash value account. Variable life insurance policies require a fixed annual premium for the life of the policy and may provide a minimum guaranteed death benefit. If the cash value account exceeds a certain amount, the death benefit will increase. Variable life policies usually allow for a wider selection of investment options, known as subaccounts, for you to choose from. Your choices can range from a fixed interest subaccount to a highly volatile international growth account.
If you want a policy that can build cash value for you as well as build up some savings for later in life, talk to our agents about the right permanent life insurance plan for you!
Term Life Insurance
Term life insurance provides you protection for a specific price over a specified period of time: usually 10, 15, 20, or 30 years. Coverage expires without value at the end of the term and you will need to either convert your policy to a permanent life insurance plan or purchase a new policy for a new term. Term life insurance pays out a specified lump sum to a beneficiary only in the event that you die before the policy expires. Term life insurance is somewhat less expensive than permanent live insurance due to the drawback of having an expiration date.
Different types of term life insurance are available for you. We can modify a plan to fit your needs and provide you the maximum amount of protection for the least amount of premium.
- Annual Renewable Term – The death benefit is a level amount and will remain the same for the term period. This policy can automatically be renewed without having to provide evidence of good health each year. The premiums may however increase each year with age.
- Level Term – The death benefit is a level amount and will remain the same for the term period. Level term policies are usually purchased for a period of 10, 20, or 30 years and the premium generally remains stable over the entire period.
- Decreasing Term – The premiums remain level over a specific term, but the amount of death benefit protection decreases throughout the term. Decreasing term insurance is best for you if you have financial obligations that decrease over time such as a mortgage or a loan.
Contact our insurance professionals today to see if term life insurance is right for you.