Life Insurance

Among the types of life insurance policies offered are: whole life, universal life and term life.

Whole Life: Also known as “permanent life” this is protection that is current and valid for as long as you live. By choosing to pay a premium that does not increase as you grow older, you average out the costs of your policy over your lifetime on a yearly basis. The important feature of whole life insurance is that it builds cash value — a sum that increases over the years on a tax-deferred basis. If you cancel your policy, you can get the cash value in a lump sum, although any gains would be taxable. You can also tap into that cash value through low-cost loans.

If you have term life insurance that is convertible, you can exchange it for a whole life policy usually without a medical examination if your company offers this type of policy.

Fixed Indexed Universal Life: This variation of permanent insurance allows you, after your initial payment, to pay premiums at any time, in virtually any amount, subject to certain minimums and maximums. You can also reduce or increase the amount of the death benefit more easily than under a traditional whole life policy. (To increase your death benefit, you usually will be required to furnish the insurance company with satisfactory evidence of your continued good health — decreasing the death benefit may not lower your premiums).

Index Universal Life is permanent because the policy is meant to stay in force until the day you die and with proper funding, IUL will do just that. The premiums you pay into index life insurance earn interest and grow the cash value of your policy. This bucket of cash that grows inside your policy can be used for many things. Anything really, you choose how the funds are used. Maybe you are looking to build up a college savings fund for the kids or grandkids, to finance your major purchases, or create a supplemental tax-free retirement income.

The cash value in indexed universal life insurance can be accessed through withdrawals or tax-free loans. Tax-free loans or tax-free income are what have caused IUL to become very popular. Imagine receiving income each month at retirement and not having to pay income taxes to Uncle Sam. What is even more amazing is that you can't lose money in your policy if the stock market loses money. This policy is not a security and your cash value is not invested directly in the stock market.

Term Life: Offers protection for a specific period of time — usually 10, 20 or 30 years. This policy pays a death benefit only if you die during the period covered by the policy. If you stop paying premiums, the insurance stops. The coverage ends at the end of the term but can be renewed, usually at a higher premium because you are older and you also may need to be re-underwritten based on your current health at that time.

There is also a different type of term life policy which may return your base premium to you if you continue to keep the policy in-force and if you do not die by the end of the policy term.

The Amwell Agency is licensed with many of the leading providers of life insurance in the country.

Getting quotes for life insurance has never been easier! Just send us a completed Request Form for additional information or to obtain a quote.

The Amwell Agency can help you with…

  • Reviewing your present life insurance program
  • Answering questions regarding your current coverage
  • Researching more affordable plans

…and much more!