Life insurance helps provide security for your loved ones when they need it the most. Providing them with this protection can help them rest assured that they will not face the added financial burden should something happen to you. Our partners at Red Mountain Benefits Group are knowledgeable about both individual and executive policies.
- Term Life
- Whole Life
- Key Person Life and Disability
- Buy-Sell Agreements
Term life insurance is more cost effective than Whole life and provides a guaranteed coverage amount for a specified amount of time. Generally, you can choose periods of 10, 20, and 30 years. Term life does not build cash value. Term life is designed to help individuals pay for final expenses and other necessities such as: funeral costs, mortgage and car payments, and any other outstanding debts.
Whole life insurance provides a set amount of coverage for the duration of your life. As long as you pay the premiums, your beneficiary will receive the benefit amount upon your death. Whole life policies build cash value. It is possible to access that cash value to pay premiums or as an emergency fund.
Key person life and disability
Key Person policies are generally taken out on owners of the business, executives, and difficult to replace individuals. The purpose of key person policies are to help businesses survive the loss of a person who is instrumental in running the day-to-day operations of the business. Typically, businesses use the proceeds for debts and expenses until they can find a replacement.
With a buy-sell agreement owners agree to buy and sell their respective business interests to one another at a set price upon retirement, disability, or death. Rather than rely on accumulating or borrowing money to fund the purchase, each owner buys life insurance on the other owners. The life insurance proceeds can be used to fund other obligations to each other.