Death benefit
All basic life insurance contracts provide a death benefit. The amount can be customized to meet your needs and budget.
Cash value
You can also structure a policy to accumulate tax-deferred cash, accessible during your lifetime through policy loans or withdrawals — helpful for emergencies, a college education or a much-needed vacation.
While there are a variety of life insurance options and features on the market today, life insurance typically falls under two categories: term life and permanent life.
Term life insurance
Term life is the more cost-effective of the two options. It provides protection for a specific timeframe (term), typically in ten-year periods from 10 to 30 years. If you die within the insured term, the insurance company issues a payment to your beneficiaries. If you survive the period, your coverage ends. For those seeking a large death benefit, term life insurance may be an appropriate option, and additional features can enhance your term coverage.
Run your own term life quotePermanent life insurance
Unlike term life insurance, a permanent life insurance policy provides lifetime protection, as long as premiums and applicable charges are paid per the conditions of the contract. This category of policy offers flexibility and builds tax-deferred cash value. There are three main types:
Whole life
Provides a death benefit, guarantees a rate of growth for the cash value component, and pays dividends.
Guaranteed universal life
A combination of term and whole life: there is no ending “term,” and policies have a level premium and level death benefit for life.
Indexed universal life
Cash value accumulation is tied to one or more market indexes such as the S&P 500, Russell 2000 or Euro Stock Index — upside potential without the downside risk.
Cash value life insurance — additional benefits
In addition to protecting your dependents, a cash value life insurance policy is protected from creditors. In most states you can own it in your name, have access to the value, and the account will not be subject to a lawsuit. The cash value can be accessed at any time and can be used to supplement retirement income.
CPA Benefits offers whole life, universal life, and term life insurance for accountants. Contact us for a personalized quote today.