Insuring your future and your family.
No one likes to think about life insurance, but it is important to provide for your loved ones after you’re gone. Without your income would they be able to live at the same standard as they do today?Basically there are two types of life insurance: Term and Permanent. Both pay benefits to your designated beneficiary at the time of your death. Cato Insurance Group offers both types through Lincoln Benefit (an Allstate company) and Prudential.
Term Life Insurance is the less expensive policy. It is called term because the policy is for a certain term which could be a year or 20 years, although it typically is renewable. In that case, you renew the policy each year and pay the premium which will go up each year as you age. You also have the option to buy a level-premium policy that locks the premium in for the term, say five, 10 or 20 years. The initial premium is higher but it remains the same with no increases for the term. Most term policies are only renewable to a certain age, usually 75 and then it ends with no benefits paid after that.
With Universal and variable Life Insurance, the premiums are much higher than Term Life, but a portion of that payment goes into the policy’s cash value. Also the premiums are fixed as long as you have the policy. Initially the cash value is very low but over time the cash value can grow. You can cancel or surrender the policy at anytime and use the cash for whatever you wish. The other option is to take loans or withdrawal from the cash value when you need to supplement your retirement or have an emergency.
You could also buy a policy that combines the two. Your Cato Insurance Group agent can help you decide what type of life insurance policy is best for you and the coverage you need to take care of your family upon your death.
Call us now at 1-888-775-CATO (2286). We’ll arrange for a free, 30-minute consultation with our financial specialist.