People often purchase life insurance for personal reasons such as providing financial security for dependents, covering debts, ensuring funeral expenses are met, and providing a financially stable future for loved ones left behind.

Professionally, business owners use life insurance to fund buy/sell agreements, protect against the loss of key employees, and maintain business continuity, as it can provide capital needed to cover operational costs and support the company during transitional periods.

Overall, life insurance serves as a safety net that safeguards both personal and business financial stability. Sometimes, these events can be planned. All too often, they come at us unexpectedly. Achieve peace of mind when these things occur by being financially proactive and protecting what matters most with the financial security of life insurance.

Agents of S.H.I.E.L.D. Financial & Insurance Services have access to dozens of life insurance options with some of the best carriers in the industry.

There are essentially two types of life insurance: Term Life and Permanent Life insurance.

Term Life Insurance
As its name suggests, Term Life Insurance offers a monetary benefit if a covered individual dies within a specific period of time set forth in the contract. Term Life insurance can be broken down into several types:

Level Term Life Insurance: Offers a fixed death benefit and level premiums over the entire term, ranging anywhere from 5 to 40 years. This is the most common type of term life insurance.

Decreasing Term Life Insurance: Features a death benefit that decreases over the term of the policy, often used to cover decreasing debts, such as a mortgage. Premiums decrease as the term progresses.

Annual Renewable Term (ART): Provides coverage for one year, with the option to renew annually; premiums typically increase with each renewal based on the policyholder’s age.

Convertible Term Life Insurance: Allows policyholders to convert their term policy into a whole life or permanent policy without a medical exam, providing flexibility as needs change.

Return of Premium Term Life Insurance: Refunds the premiums paid if the insured outlives the term, often at a higher cost compared to standard term policies.

Term life insurance is generally the most affordable type of life insurance available today. You can often purchase a term life policy at a reasonable price. Reach out to an agent of S.H.I.E.L.D. Financial & Insurance Services by filling out the contact form or call our office at 801.209.9598 to learn how term life insurance can provide you with peace of mind.

Permanent Life Insurance
The primary benefit to owning a Permanent Life Insurance policy is that, unlike term insurance, the policy will remain in force as long as the insured person remains living. These policies accumulate cash value over time, providing a savings component that can be accessed or borrowed against during the policyholder’s lifetime.

Permanent life insurance also typically offers level premiums, ensuring that costs remain stable throughout the policy’s duration, and can provide potential tax advantages, as the death benefit is usually paid out tax-free to beneficiaries and the cash value growth is tax-deferred. Furthermore, some types of permanent life insurance can offer flexible premium payments and investment options, allowing policyholders to tailor their policies to meet changing financial needs or objectives.

There are several different types of permanent life insurance, including:

Whole Life Insurance: Provides a fixed premium, guaranteed death benefit, and cash value accumulation over time.

Universal Life Insurance: Offers flexible premiums and death benefits, allowing policyholders to adjust both as their financial situation changes, with cash value growth tied to market interest rates.

Variable Life Insurance: Allows policyholders to allocate cash value among various investments, allowing them to potentially increase the value of their cash-heavy policy.

Indexed Universal Life Insurance: Combines features of universal and variable life, linking cash value growth to stock market index options while providing protection from loss due to an underperforming market.

Survivorship Life Insurance: Covers two individuals (usually spouses) and pays the death benefit after both have passed, often used for estate planning.

Group Life Insurance: Many organizations (especially those with large numbers of employees) offer a group life insurance option. These are generally voluntary benefits and generally cost less than an individual life insurance policy. Most plans start with a minimum amount of coverage (most commonly $50,000), but participants are usually able to increase the insurable amount through the purchase of additional benefits. Most group life insurance plans only cover an individual as long as they are actively employed by the company offering the benefit.

Financial professionals will tell you that permanent life insurance is an essential part of a sound financial plan. Their stability ensures that your financial legacy is preserved while offering flexibility and access to liquidity if life’s circumstances change. Most of all, it will provide peace of mind for both you and your beneficiaries. For more information about the benefits of whole life insurance, reach out to an agent of S.H.I.E.L.D. Financial & Insurance Services by calling 801.209.9598 or filling out the contact form on this website.