Planning for the “When”– Not “If”
Life insurance protects your loved ones, and gives you peace of mind.
At McCormick Insurance Solutions, we know that life changes abound. One day you might be graduating college, the next thing you’re getting married, then perhaps a baby comes along the way. Eventually we all face losing a loved one.
No matter your age or life stage, your earned income likely provides a means to protect those who you’ll leave behind. And, if you die unexpectedly due to an accident or illness, your paycheck won’t be there to take care of your survivors.
The good news is that a life insurance policy payout will likely cover any remaining credit card bills, mortgage payment, college tuition and funeral expenses.
This means your loved ones don’t have to worry—nor do you.
Benefits of Life Insurance
A cash distribution (death benefit) will help your family meet many important financial needs after you die.
Insurance proceeds are generally income tax free and can be arranged to avoid probate.
Life insurance covers “unbudgeted” expenses (e.g., funeral costs, medical bills, taxes, debts and lawyers’ fees).
Proper planning helps your survivors guard against paying your estates taxes (up to 45% of your estate).
Life Insurance is for Youthful and Healthy People, Too!
If you’re young and fit, we applaud you! There’s no time like the present to acquire life insurance while the premiums are still small. Buying a life insurance policy early on in life can often provide substantial savings over your lifetime. Most of all, life insurance provides peace of mind—for you as well as your family.
What Exactly is Life Insurance?
Life Insurance leaves behind a strong legacy of care for your loved ones long after you’re gone.
Essentially, life insurance means that your loved one (designated beneficiary) will receive a lump sum of money (death benefit) after your death. Depending on the type of life insurance you choose, other events such as a terminal illness may also trigger payment. In return, you will pay a regularly monthly or annual premium until the end of the insurance term or contract (typically upon age XX or death).
Life Insurance Options: Term, Whole and Universal Life
Life insurance is usually divided into temporary and permanent coverage. At McCormick Insurance Solutions, our most common products include term insurance, universal insurance and whole life insurance.
Term insurance protects you for a specified time (number of years) based on the length of your premium payments. Because the policy does not accumulate cash value, this type of insurance is more about “what you give is what you get.” Term is generally purchased only when a policyholder requires a payout in the event of death, and for no other reason.
Over time, permanent life insurance will become like ‘cash’ when the policy matures (pays out). That is, unless the policy owner forgets or fails to make the regular payments and lets the policy expire. Permanent insurance premiums often become less expensive to the policyholder. Even better, you can cash out (withdraw) your money, borrow against the policy’s cash value, or surrender the policy and receive the present cash value.
The two types of permanent life products that McCormick Insurance Solutions provides is whole life insurance and universal life insurance.
- Whole life insurance provides a guaranteed cash death benefit and regular (fixed) annual premiums. Should you ever opt to increase the death benefit, you can increase the payout by paying more on your regular premium. Whole life premiums are typically higher than term insurance in the short term, but over time, they’re about equal if you continue to pay against the policy until the average life expectancy.
- Universal life insurance provides permanent insurance coverage with a bit more flexibility than whole life insurance. When it comes to paying your premium and receiving a death benefit, there’s a potential to grow your cash value, which differs from the fixed premiums that come with whole life.
Attention San Diego—Life insurance is for everyone, including:
- Small business owners
- Married couples—with or without kids
- Single professionals—with or without kids
- Children—even newborns
- Parents of grown children
- Stay-at-home moms
There’s No Time Like the Present
Life insurance can be one of those things like a will that you hope to get to. Some day.
Because there’s a lot of planning that goes into finding the right life insurance product—whether it’s term, whole or universal life insurance—let’s start having the conversation now so you’re more prepared when “some day” comes.
At McCormick Insurance Solutions in San Diego, CA, we’ll help you navigate the decisions and help you plan to take care of your family long after you’re gone.
Call our Bay Park office at (619) 276-0492 and ask to speak directly with Wayne McCormick. He’ll provide you with a personalized life insurance consultation.
Or, if you’re short on time (or after business hours), provide your phone and/or email information in the Quote Request form and we’ll get back to you right away!