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Ask an Expert About Life Insurance

What is the purpose of life insurance?

A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death. Typically, life insurance is chosen based on the needs and goals of the owner.

Why do we need life insurance?

Life Insurance is needed to ensure that your immediate family has some financial support in the event of your death. The money can be used to finance your children's education and other needs. A life insurance plan can also be used as a savings plan for the future so that you have a constant source of income after retirement.

Can I withdraw money from my life insurance?

Withdrawals will depend on the type of policy and how long you have had it. Generally, you can withdraw a limited amount of cash from your whole life insurance policy. Usually the amount is the cash-value up to your policy basis, which is the amount of premiums you've paid into the policy. It is typically non-taxable.

Which is better: term or whole life insurance?

The answer to this question depends on your situation and needs. The dollars you pay into term life insurance premiums are only there to provide a death benefit to your beneficiaries if you die during a specified term, while money you invest in whole life insurance premiums builds cash value that you can use later in life or that will add to the death benefit payout. Monthly premiums tend to be less for term life insurance, so it is most popular with younger families with children.

It is always advisable to speak with a licensed insurance professional while deciding the amount and type of life insurance is best for you. There is no obligation or fee for getting an insurance quote.

Call Carrie Wear, Century Insurance, for a life insurance quote: 319.800.8629 

Click here to request a quote online.

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