Life Insurance
Life Insurance Protects Your Family After Death
Keeping your family safe includes protecting against financial hardships. Whether it’s a spouse, children, or other family member who relies on you for support, life insurance provides a critical safety net to their future following your death. In addition to easing the expenses associated with a funeral or other ceremonies, it can aide during the transition if you were financially supporting them through active income.
Iott Insurance has worked with life insurance policies for over half a century, and we understand how important it is for you to choose a plan that best fits your family’s needs. We work with Michigan’s top life insurance providers, and are here to help you navigate through the benefits and policies available to you.
Types of Life Insurance Plans
When choosing a life insurance plan, there are two major categories to choose from.
Term Life Insurance
A term life insurance policy only lasts for a set period of time. If you die before the term ends, it pays a pre-determined value known as a “death benefit.” This is paid to the beneficiary you selected when you started the term policy. If you live beyond the end of the term, this policy simply expires.
You may be eligible for a term policy with a “return of premium” option, which returns some or all of the premiums you paid into the term policy if you live past the expiration period. However, they also come with higher monthly premium costs.
Whole Life Insurance
Unlike term life insurance, whole life insurance policies never expire. Also known as a permanent life insurance, a whole life policy, can be more complex than a simple term policy. A whole life insurance plan will accrue a cash value while you pay into it, acting as a long-term investment to protect your family upon the event of your death. This cash value builds in a tax-deferred account, which means you do not have to pay additional taxes for the gains from this investment.
The premium for a whole life insurance is set from the start, and continues for as long as you live. Unlike a term policy, there’s no risk of outliving the coverage, so the death benefit is guaranteed upon your passing. The financial value to your family also grows throughout the years. This makes it a smart choice even for younger individuals who want to financially protect their spouse or children in the future.
Compare Types of Life Insurance
| Term Life Insurance | Whole Life Insurance |
|---|---|
| Lower Premiums | Guaranteed coverage |
| Set term periods | Accrues Interest |
| Protection against unexpected financial hardship | Investment & Estate Protection-in-One |
| Generally not applicable over age 70 | Covers you at any age |
Life Insurance Needs Estimator
It’s challenging to determine the best balance for your life insurance policy. We’ll work with you to determine your needs and find the best policy for you and your beneficiaries.
To help you get started in thinking about your life insurance policy, consider using this Life Insurance Needs Estimator.
Plan Your Life Insurance Policy with Iott Insurance
We can help you build a life insurance plan that meets your budget and provides financial security to your loved ones in the event of your death. Knowing your family is taken care of is an important part of maintaining peace of mind into your golden years. Let us make the process easy.
FAQs About Life Insurance
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How Old Should I Be When I Get Life Insurance?
There’s no set age where life insurance becomes the right answer. It’s often about life milestones and whether or not you have individuals who rely on you for financial support. Life insurance is designed to protect those you support from hardships following the loss of your income on death. If you have children, a spouse, or others who rely on you for necessities, life insurance is the best way to protect them.
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I Need Emergency Funds, Can I Withdraw from My Life Insurance Policy?
In some cases, yes! Certain types of life insurance plans allow you to tap into the cash value of your life insurance plan based on what you’ve accrued over the term of the policy. We can help you decide if a plan like this is necessary for you and will help you understand how these policies work.
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How Do I Select a Beneficiary for My Life Insurance?
In most cases, the beneficiary for your life insurance policy can be easy to select. They’re often the reason you’re planning a life insurance policy in the first place. If you need additional help, consider reviewing our guide for choosing the right beneficiary for your life insurance policy.
Report A Claim
Do you need to report a claim? Our dedicated claims specialists are standing by to help!
Find out about our claims process, who to contact, and how you can receive afterhours claims assistance.