Term life insurance is the way to go when you need low premiums and short-term coverage.

Life insurance is something that almost everyone should have as we all have someone who depends on us in one way or another. Even the loss of someone that does not hold a job or provide income can be

financially difficult on remaining family members if they need to hire people to do the tasks of that person.

At McCraw Insurance Services, we understand that it can be helpful to have peace of mind by having life insurance, but not be able to budget for the higher premiums of either universal or whole life insurance. In addition, some people only need life insurance for a short period of time. In these situations, and others, term life insurance can be the best way to go.

There are many different types of term life insurance. Some policies last for a specific period with no increase in premiums until the policy ends. Others have a renewability clause where after each year, five years, or another set time period, the policy does renew but premiums are based on your age at that time.

Term life insurance is a good option for younger people, especially those wanting to protect their young children should something happen to them. For a modest premium, you can have a fairly large death benefit that can replace the many years of lost income that a premature death would cause. We can also discuss policies that have a convertible feature so that you can change your term life insurance policy into permanent coverage later.

We can help you choose the right type of life insurance for your needs, including term, universal, or whole life insurance.

While term life insurance provides a benefit only as long as you keep the policy in force by paying the premiums, whole life insurance contains a savings component so that you are accumulating cash value as you pay the premiums. This accumulation can be helpful to you, not just your beneficiaries, as you can borrow against it or withdraw it should you need it. The value continues to grow not just by your premium payments, but also by earning interest. Another benefit of whole life insurance is that it will pay out a death benefit regardless of how long you live, whereas at some point, the premium for term life insurance may become cost-prohibitive or the policy may end entirely.

Universal life insurance has several advantages that make it ideal for many people.

There are situations where someone’s situation does not fit either term life insurance or whole life insurance. The compromise in the middle is universal life insurance. At McCraw Insurance Services, our goal is for every customer to have the coverage that fits their needs and to be fully informed about their options. If you are looking for life insurance with more flexibility than whole life and with lower premiums similar to term life, universal life insurance could be the ideal choice for you.

With universal life insurance, you will know what the minimum premium you have to make is to ensure that the death benefit remains in force. The term for this is COI which stands for Cost of Insurance. By paying in premiums in excess of the COI, you accumulate a cash value that can cover future increases in the COI as you get older. The excess you pay in earns interest, so it acts like a savings account. As with a whole life insurance policy, down the road you may be able to access part of the cash value without changing the death benefit. The advantage is that with universal life insurance, you can have flexible premiums instead of the fixed ones that a whole life policy has.

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