Life insurance comes in many forms and can be used for many other purposes besides just paying for your final expenses. The older you are, the more expensive life insurance becomes and the less options you have. Here at the William M. Sparks Insurance Agency in Timonium, Maryland (Baltimore County), we help people like yourself fashion just the right policy to secure their future.
Why Purchase Life Insurance?
Life insurance is a popular financial planning tool. Since the benefits of a life insurance policy are typically paid upon your death, many people regard it as just a way to pay for your funeral and burial. However, it can also be useful to:
- Pay federal or state estate taxes to remove that burden from your heirs.
- Replace dependents’ income in the event of your death.
- Create an inheritance for your beneficiaries.
- Create a charitable contribution fund.
- Accumulate savings if your policy grows a cash value.
Types of Life Insurance Policies
There are two types of life insurance – permanent and term.
- A Term life insurance policy pays benefits only if death occurs within the defined term of the policy, typically 1-30 years. It usually will not have a cash value that you may cash in or borrow against. Many term life insurance policies offer the option to convert to a permanent (cash value) policy.
- Permanent life insurance is structured to pay benefits for a “lifetime” – often even beyond 100 years of age. There are three types of permanent policies: traditional whole life, universal life and variable life insurance.
- With traditional whole life insurance, the death benefit does not change and the premium remains constant for the life of the policy. Over time, the policy accrues a cash value which you may withdraw or borrow.
- A universal life insurance policy is much like traditional whole life insurance, except that you have the option to change the amount of the death benefit and/or vary the premium within certain limits without having to purchase a new policy.
- Variable life insurance has an element of risk since it combines traditional or universal life protection with a savings feature that you can invest in stocks, bonds, money market mutual funds. You could be subject to financial risk and the loss of your policy’s cash value, depending upon the behavior of the market. This agency does not offer variable life insurance products at this time.
Is it time to plan for your future and the protection of your family?
Why not discuss the many life insurance options with one of our experienced agents here at the William M. Sparks Insurance Agency in Timonium, MD, who can help you explore the choices and answer your questions. Just contact us today to discuss how we can help or to get a Life Insurance quote.
The scope of your insurance coverage and options depend entirely upon the policy and the insurance company providing it. This website is not intended to advise, offer or bind coverage. You should always discuss your insurance issues with professionals such as a licensed and qualified insurance agent like those at the William M. Sparks Insurance Agency before making any decisions or choosing a course of action.