The Right Life Insurance Policy Can Protect The Future Of Your Loved Ones

Staff | 06/25/2023

Life is a cycle, at the end of which comes death. When that time comes, you want to make sure your family is financially prepared to survive without you, especially if you are your family’s primary breadwinner. A life insurance policy allows you to set aside funds to safeguard your family's financial stability in the event of your death. There are different types of life insurance policies and before you invest in one, it's important to define your specific needs by deciding how much protection you require and can afford. Deciding what’s right for you isn’t something you need to do alone, though. Turn to the trusted professionals at Massey, Clark, Fischer (MCF), to navigate through the intricacies of the different types of policies. We can help you secure a better and brighter future for your loved ones.

There are two main types of life insurance policies, but you can also work with an insurance professional to tailor something to your specific needs. Before buying any coverage, it's vital that you learn about the different coverage options:


Term Life

A “term policy” involves coverage purchased with a specific time length. It pays a death benefit only if the policyholder dies during the policy's validity period, and premiums are paid. It offers:

  • Coverage for a specific time period
  • Lower premiums for higher coverage
  • Rates can change after specific terms expire
  • The premium is more affordable during your early years (premiums increase as you age)
  • No equity – policy typically has no cash value
  • May be convertible and renewable to whole life insurance


Traditional Whole Life

Whole life insurance, sometimes referred to as “permanent insurance,” guarantees coverage for the entire life of the policyholder. Upon the policyholder's passing, a death benefit is paid, regardless of his or her age. This type of coverage offers:

  • Permanent protection
  • Fixed premium
  • Can build equity and have cash value 
  • The cash value accumulates from premiums paid and increases over the years
  • Higher premiums than term life, but can be more valuable in the long run
  • Policies with cash values include provisions that allow you to take out loans on your policy for up to the amount of the cash value, usually free of current taxation


Customized Policy Options 

To meet your personal needs, there are other options we can help you seek, including long-term care and annuities. As an independent insurance agency, we work with 70+ qualified carriers. Our team knows who to go to if you are interested in “hybrid” coverage combinations. The key to finding the policies that are right for you is having a trusted MCF advisor on your side to guide you through complicated options. 


How is Cost Determined? 

The cost of life insurance differs among insurance companies. According to the Florida Department of Financial Services, the factors that determine policy pricing usually include:

  • Policy type and amount of coverage
  • Age, health and habits (such as smoking)
  • Family history
  • Mortality tables, which identify statistical death probabilities by age
  • Administrative expenses (such as policy fees)
  • Current interest rates
  • Surrender charges (what you pay if you cash in your policy)

The insurance industry devised a highly efficient tool known as the “Cost Index” to assist you in finding the most cost-effective insurance option. It determines the costs of life insurance plans that are alike and can be explained in more detail by any one of our team members at MCF. Take advantage of this opportunity to identify the best insurance policy for your personal needs.

If you want to secure the financial future of your family, life insurance shouldn’t be a question. With a variety of alternatives and policy possibilities, it’s understandable that you may feel a bit anxious but remember, life insurance is all about you and you are certainly worth insuring! At MCF, we are here to guide you through the process and ensure that you make an informed decision that is best for you and your loved ones. Contact us for a free insurance quote today!


Disclaimer: The above description provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.

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