| Life Insurance | ||
| SECTION 1 Return to the prior page Life Insurance SECTION 3 SECTION 4
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Why Buy Life Insurance?
People buy life insurance because they love someone else and care what happens if they die prematurely. Life Insurance can complete those promises you have made to your family, in case you can't. It can provide the dollars for education for your children. It can make sure they have adequate income for the next ten years or twenty years or the rest of your spouse's life. It can complete the retirement planning you have started. Or it can simply give you and your family the peace of mind to know that if the worse happens, they can remain in their own world.
Every situation is different. Everyone has different needs. We offer a computerized planning service to help organize your life insurance and financial programs to help you determine the correct amount. Most people need 8 to 10 times their income in life insurance. How much do you have? What is the Best Type of Life Insurance to Buy? The right kind of life insurance depends on an individuals needs and objectives. Term life insurance is designed for shorter term needs like debts or college education or raising children. The price of term life is low because you are paying for the cost of protection. It does not accumulate any equity. The price will increase with time and age. It is available in many forms. Most people choose some form of level term. This product offers a level death benefit with a guaranteed level premium for a selected number of years. The price reflects the amount, age, smoking status and the length of the guaranteed level premium. Universal Life is not term life, since it accumulates cash value and requires a higher premium. You can use Universal life to resemble a long term "level term" product or you can fund it to accumulate cash. The premiums are flexible and can be changed over time. Whole Life is the most expensive life insurance product. The cost reflects the guarantees provided. Whole Life
guarantees if you pay the fixed premium it will be there your whole life. Term insurance and Universal life do not provide those guarantees. Variable whole life or universal life is a variation of the prior two categories. The main difference is the investment options for the cash accumulation. Variable life offers the opportunity to invest those dollars in "mutual fund" type investments. Which is the best choice for you depends on your objectives. Often is a combination of those products is the solution. That's why we use a computerized Needs Analysis to help you with your planning. That's what we do. BPP offers a full line of life insurance products and companies, giving you all the options you need.
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