Benjamin Franklin was once quoted saying, " in this world nothing can be said to be certain, except death and taxes.” It is interesting that he would have chosen these two topics of both death and taxes. The life insurance industry has zeroed in on these two specific concerns and have crafted solutions to soften the blow.
Let's start with the obvious: death. No one is immortal (yet... with technology and all). The average age of life expectancy has continually climbed for the past 40 years. However, the body still expires. The life insurance industry, namely the actuaries, study these trends and historical data incessantly. Causes of death are not the primary focus, it's when you die. There are life insurance policies that are available from age zero to one hundred years old. Some policies offer coverage for a specific term of time. If you do not die within that time period, the policy expires and there is no more coverage in the event of death. Think of it like your auto insurance. If you pay for auto insurance for one year and never have an accident or claim and do not renew the coverage, the policy expires and there is no more coverage. In either case, no money is return to the policy holder.
The other type of life insurance is whole life. It is designed to cover you for your whole life. If this policy is kept in force (payment are always made), it will never be cancelled and will pay a death benefit when you die. The cost of this insurance steadily and gradually increases as you advance in age due to the simple fact that it will eventually pay a death benefit.
The life insurance industry has also created solutions to help with the certainty of taxation. All death benefit monies paid out in the event of death are tax free. Life insurance proceeds are not taxed. Additionally, certain whole life policies allow the option for accumulation of cash value with a rate of return tax deferred and are sometime tax free.
There are hundreds of life insurance companies. All of them have numerous different life insurance products that service specific needs. Get with an independent insurance agent to discuss and discover what might best fit your needs.
Stickler Webb Insurance is an independent insurance agency with offices in Show Low, Safford and Sierra Vista, Arizona. Please visit, www.sticklerwebb.com for more information.
Imaging walking into an ice cream parlor and asking the attendant for a scoop of ice cream. Upon close inspection of the different flavors, you discover that they only have one flavor, vanilla. Now if vanilla is your favorite flavor, you have come the right place. If you get tired of vanilla, you have to shop somewhere else. In your search for a new ice cream parlor, you discover one that has not only vanilla, but several dozen other flavors too. With so many flavors to choose from, why would you ever go any where else?
In a similar fashion, there are two types of insurance agents: captive agent and the independent agent. A captive agent works strictly for one insurance company. Their insurance product and solutions are limited by what their insurance company has to offer. A captive agent's interests are those of the insurance company. They are compensated directly by the one company they represent, The insurance company they represent dictates what the agent can sell and is expected to protect the insurance company's interests.
In contrast, independent agents are just that, independent. They are entrusted to represent and offer a virtually unlimited variety of insurance products and solutions from a multitude of insurance companies. They are not bound nor limited by just any one particular insurance company. This flexibility allows the independent agent to search and compare the best available insurance solution for their clients. In effect, they work for their clients and are somewhat agnostic as to which insurance company earns their client's business. The independent agent's interest and loyalty is placed with their clients.
Stickler Webb Insurance is an independent insurance agency with offices in Show Low, Safford, and Sierra Vista. We look forward to working for you. Look for us on www.sticklerwebb.com .