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Life Insurance

What is Life Insurance?

Life insurance offers the financial safety net for your loved ones in the event of your death by ensuring the continuity of wealth with a tax-free benefit. Getting life insurance helps provide Space to Breathe, as your loved ones can ensure their standard of living is not entirely disrupted after your death. Find the most suitable life insurance coverage that suits your needs.

Why is Life Insurance Important?

Whether you’re getting married, starting a family, buying a home, creating a business, or planning retirement, it’s always a good idea to apply for life insurance (in fact, it’s better to start early, as the costs of premiums are lower). After you die, the life insurance will protect the people you love by providing them a tax-free payment. This can help alleviate the pressures of costly expenses, such as mortgage payments, education, debts, funeral costs, and more.

Cove Life Insurance - Why Is Life Insurance Important

Types of Life Insurance

There are two main types of life insurance coverage: cash value life insurance and non-cash value life insurance.

Cash Value Life Insurance

  • Most comprehensive coverage
  • Long term applications
  • Variable options:
    • Payment values
    • Death benefit values
    • Cash values
  • Maximum long-term IRR
  • Effective tax planning platforms
  • Cash value options:
    • Guaranteed
    • Variable

Non-Cash Value Life Insurance

  • Most simple coverage
  • Temporary applications
  • Fixed payments
  • Fixed death benefit
  • Flexibility of converting to cash value life insurance
  • Easy to understand
  • Guaranteed
  • No moving parts
  • Maximum short-term IRR
  • Lowest cost options

Life Insurance 101

How much does life insurance usually cost?

The cost of life insurance varies widely based on age, gender, smoker status, and health history. Generally, insurance cost less for a younger person and increases with each year of age.

What are the main types of life insurance?

The main types of life insurance are cash value life insurance and non-cash value life insurance. Within a cash value policy, there are three sub-types: guaranteed cash value only, variable cash value only, and both guaranteed and variable cash values.

What is a good age to get life insurance?

It is best to purchase life insurance when you’re young. This is for two reasons: 1) the younger you are, the lower the premiums are, and 2) to qualify for insurance, you must be of suitable health to be covered. We are typically healthy when we are young and as we age, people’s health declines at varying rates. When you get insurance while you are young, you can keep the insurance even if you become unhealthy. If you wait until you are unhealthy, it may be too late.