Life Insurance

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Life Insurance

Erie Life Insurance

Benefits of Term Insurance:

1.      Term insurance is much less expensive.

2.      All term rates are level and “locked-in” at the age of application.

3.      Term policies are guaranteed convertible to “permanent” regardless of health conditions.

4.      Conversion is guaranteed at the same health class as the converted term policy.

5.      Often life insurance needs may decrease over time and the guaranteed conversion to permanent insurance can be at any amount up to the term policy limit (lesser amount).

6.      All policies can be continued beyond the term (time period); however conversion is usually a more affordable and valuable option at that time.

7.      Mortgage policies are available with a decreasing benefit amount to match your principal balance; however these are usually not cost effective compared to level term insurance.

Benefits of Universal Life Insurance:

1.      Universal Life Insurance is permanent and does not expire as long as premiums are paid.

2.      Universal Life Insurance builds cash value; which is an asset for the owner of the policy and may be used as a loan to yourself or future withdrawal to help with college costs, home improvements, medical bills, or other needs. The consequences of making a loan or withdrawal must be reviewed with an agent so that unwanted situations do not occur.

3.      Universal Life Insurance has a “flexible” premium.  You may opt to change or skip premium payments; however the consequences of changing premiums must be reviewed with your agent so that unwanted situations or surprises do not occur.

4.      Universal Life Insurance has a “flexible” death benefit.  At anytime in the future, you may elect to reduce your costs by permanently reducing the death benefit.

5.      Universal Life Insurance has a “flexible” interest rate; which fluctuates periodically.

6.      With “business” Universal Life Insurance, at the time of an employee’s retirement, the employer/owner can transfer the policy and cash value to employee as a retirement bonus.

 

Benefits of Whole Life Insurance:

1.      Whole Life is a permanent program and does not expire as long as premiums are paid.

2.      Whole Life Insurance builds cash value; which is an asset for the owner of the policy and may be withdrawn to help with college costs, home improvements, medical bills, or other needs.  The consequences of making withdrawal must be reviewed with your agent so that unwanted situations or surprises do not occur.

3.      Whole Life Insurance has a “fixed” or guaranteed premium; therefore all future values such as cash value, death benefit, etc. can be calculated with much greater certainty than “flexible” (estimated/fluctuating) Universal Life Insurance premiums.

4.      Whole Life Insurance has a fixed interest rate; therefore future values can be calculated with much greater certainty than “flexible” (fluctuating interest rate) Universal Life.

5.      Whole Life Insurance has a fixed death benefit.