September has been designated as the month in which we raise awareness about life insurance. That is all well and good, but something of this significance should always be at the top of the priority list. The topic of life insurance can be a delicate issue, as we are virtually staring down our own mortality.
Life insurance should not be scary, sad or confusing. It is—quite literally—the means to justify the end. That is why we want to provide a quick review of the options you have as members.
Term Insurance: A quick, cost-effective fix to cover any debts, plans and loss of income from a loved one who passes. No cash value is built from the premiums paid.
Whole Life: Provides a lifetime guarantee of insurance coverage, so long as the premiums are paid. This policy has a premium payment that never changes. Part of the premium goes towards the cost of life insurance, while the other part goes towards building cash value. An interest rate is applied to the cash account, resulting in dividends that can eventually be paid out or continue to grow in the cash account. This is good for someone concerned about future insurability or looking to pass money on to loved ones as a legacy.
Universal Life: This is another type of permanent insurance, also known as flexible life. Here, part of your premium goes towards the cost of insurance and the other to cash value. As in whole life, there are dividends, but the premiums and death benefit (coverage amount) can be changed, thereby perpetuating the life of the contract.
One of our Dupaco Financial Services staff would be happy to help you review your life insurance options.
Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Dupaco Community Credit Union and Dupaco Financial Services, Inc., are not registered broker/dealers and are not affiliated with LPL Financial.
–Not NCUA Insured–Not Credit Union Guaranteed–May Lose Value–
By Michael Poppen