Life Insurance



Types of Life Insurance


 Term life insurance is one of the many types of life insurance available. In addition to specializing in term life McClain Insurance Agency also specializes the following types of life insurance protection:


Whole Life Insurance

 Whole life insurance is a type of permanent life insurance in which the coverage and the premiums remain the same your entire life. As long as your premium payments are made as agreed, your insurance coverage lasts throughout your life, and the death benefit is a guaranteed amount.


When you pay the premiums on a whole life policy, part of each payment accumulates as a cash value. The insurance company typically invests the cash value, which continues to grow tax deferred as long as the policy is in force. You can borrow against the cash value, but unpaid policy loans and interest will be subtracted from your death benefit. You may also access your cash value by surrendering or cancelling your policy. Dividends are also typically paid on whole life contracts and can be used to either increase the death benefit or reduce the premiums.


Universal Life Insurance

 Universal Life Insurance is a flexible-premium, adjustable benefit life insurance policy that accumulates account value. The flexibility of this policy allows you to change the amount of insurance as your needs for insurance change. Universal life is similar in some ways to, and was developed from whole life insurance. The potential advantage of the universal life policy is in its flexibility and the potential for greater cash value growth during the insured’s life.


Final Expense Life Insurance

 Final expense insurance, is sometimes known as burial insurance or funeral insurance. It is a life insurance policy with a low face value, usually between $5,000.00 and $25,000.00.


Most final expense policies are “whole life”. This policy will cover you for life. They are guaranteed renewable (as long as you pay the premium) and the premium is guaranteed as well. The price will remain constant for the life of the policy. Most of these policies are “simplified issue” policies. This means that you are asked several medical questions, but you don’t have to take a medical exam.


Term Life Insurance

 Term life insurance is life insurance which provides coverage for a limited period of time. After that period, the insured can either discontinue the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.