Life Insurance Policies for Residents in Utah County
Life insurance is a great tool in securing your loved ones’ future. There are many options when it comes to life insurance policies, so finding the right one is important. With help from Ascend Investment Management, we can help guide you through your options. We are a local investment management company that serves all of the Wasatch Front, which includes Utah County. We’ll make sure your life insurance plan is exactly what you need.
We understand life insurance policies and we can answer any questions you have, and we’ll make sure that the life insurance policy you take out will meet your needs now and in the future.
Term Life Insurance
Term life insurance is a policy that guarantees payment if the individual under the policy passes away during the term. This is also known as pure life insurance. When the term expires, you can either renew your life insurance for another term, switch over to permanent coverage or let your policy end altogether. Term life insurance plans do not provide any value except for the death benefit, so there are no savings benefits like you would find in other policies. Your premiums are based on health, age and life expectancy.
If you pass away while you’re under the term, your beneficiaries will be paid out for the face value of your term life insurance policy. Typically, the benefit is not taxable and it can be used to cover a variety of things such as funeral expenses or paying off debt. It’s important to note that if your policy expires before you pass away, there will not be a payout. That’s why it’s important to renew your term when it expires. In addition, your premiums will be recalculated for your age when renewing.
There are different types of policies for term life insurance. These include:
- Level term or level-premium
- Yearly renewable term (YRT)
- Decreasing term policies
This type of policy can be beneficial for individuals and there’s a lot of information about them. At Ascend Investment Management, we can help guide you through these policies.
Permanent Life Insurance
Permanent life insurance is used to describe life insurance policies that don’t expire and last for the policyholder’s lifetime. The two main types of permanent life insurance are whole life insurance and universal life insurance. Under permanent life insurance, you get the death benefit and the ability to build a cash value under savings.
Whole Life Insurance
Whole life insurance differs from term life insurance. For whole life insurance, the policy lasts for the policyholder’s lifetime. When the individual who is covered under the policy passes away, the beneficiary receives the benefit (as long as the premiums were being paid). Just like a term policy, whole life insurance pays a death benefit but there is also a savings benefit where extra cash can be accumulated. The savings can be used as an investment and the policyholder can use the cash while alive. You could withdraw or borrow against it if needs be.
The payout under a whole life insurance plan is typically a set amount. Some whole life insurance plans come with the option of dividend payments. These dividend payments can be used to purchase other death benefits to increase the amount paid when you pass away. One thing to be aware of is that outstanding loans taken against the cash value can decrease the death benefit. In addition, riders are typically offered by most insurers to secure the death benefit in the event that the policyholder becomes disabled or terminally ill.
Universal Life Insurance
A universal life insurance plan is a lot more flexible than whole life insurance. Under a universal life insurance plan, you have more control over premiums and death benefits. This policy contains two components. The cost of insurance amount and savings (cash value).
The cost of insurance is the premium you pay to keep your plan active and it will be based on your age, insurability and the insured risk amount. The cash value is another benefit to a universal life insurance plan.
Contact Ascend Investment Management
Residents in Utah County who are looking for the best life insurance plan can turn to Ascend Investment Management. Give us a call today at 801-386-5311.