Why Get Life Insurance?
It’s a fact of life that everyone will die, and some will die sooner than later. It’s important to be able to take care of loved ones after your passing. With life insurance in Illinois, you will have money available to maintain the financial life of your loved ones and their future.
With life insurance, you are looking out for your family, spouse, or children. Money can be used to pay for death and funeral expenses, college education, and maintaining the same financial freedom you currently have. There are also some benefits of having life insurance while you are still living, depending on the policy you have. Permanent life insurance will allow you to build cash value that can grow tax-free.
Types of Life Insurance in Illinois
Term life insurance is life insurance for a specific term. This is usually between one and 30 years. If you pass during the term, then the beneficiary will receive the money. If you are still living when your term expires, then you can choose to renew the policy, but it will usually be at a higher price because premiums can be dependent on age. Permanent life insurance is life insurance for your whole life unless you stop paying or cancel the policy.
There are two main categories of permanent life insurance: universal and whole. Whole life insurance allows you to pay a fixed premium for life. There is also a cash component. The cash value can grow, and there is interest accrued. The interest growth in these policies is tax-deferred, which means you don’t pay taxes, and if you die, your beneficiary does not pay income taxes on this. Universal life insurance is similar to whole life insurance but does not have some of the same guarantees. An agent at Presidential Insurance Agency can help you determine the best policy and how much coverage you should have based on your needs.
Contact Presidential Insurance Agency to get a quote on life insurance and have your questions answered.