Life Insurance

Key Man Policy: Key Man insurance is a life insurance policy on a key person in your business.  In small businesses, this is typically the owner, the founders, or even a key employee – any person who is crucial to the success of your business.  If this person’s absence would drastically reduce the amount of business done or even completely stop operations, a Key Man Policy can help soften that blow, allowing the business recover.

Second-to-Die Policy: Typically used for estate planning, Second-to-Die Policies are a life insurance policy on two people (usually married) that only provides benefits to the beneficiaries after the last surviving person on the policy passes.  This is unlike a regular life insurance policy in that the surviving partner doesn’t receive any benefits after the spouse or other policy partner passes.

Term Life:  Term Life Insurance policies provide a death benefit if and only if the person dies while the term of the policy is in effect.  Term policies are purchased for a specific time period (such as 5,10,or even 30 years). Even though they do expire, term policies are often cheaper than permanent life policies and can typically be converted to whole life insurance or renewed.  Term Life policies can be used as temporary additional coverage to ensure beneficiaries can handle any debt load that may be left upon death (such as purchasing a 30 year term policy when taking out a 30 year mortgage for a home).

Whole Life:  Whole Life is a type of permanent life insurance that offers consumers consistent premiums and guaranteed cash value accumulation at the end of the policy.  Policy holders must pay the same amount of premium for a specific period to receive the death benefit. Permanent life policies do not expire at a set age or date, unlike term insurance.

Universal Life:  Also known as an ‘adjustable life policy’, Universal Life Policies are a type of permanent life insurance that gives consumers flexibility in the premium payments, death benefits, and the savings elements of their policy.  Permanent life policies do not expire at a set age or date, unlike term insurance.