Comfort is our policy · Life Insurance
Life insurance, planned around what it has to do
Comfort for the people who count on you. Life insurance should be sized to a job: replacing income, paying debts, funding a buy-sell agreement or giving an estate cash when it needs it. We start with the job, then find the policy.
Speak with an AdvisorHow much life insurance do I need?
Life insurance should cover what your household would need if your income or contribution stopped: remaining debts, years of living expenses, education costs and any future obligations such as care for a family member. A common method adds those needs together and subtracts savings and existing coverage. Business owners and larger estates also need to account for buy-sell obligations and the cash an estate will need to settle.
What is the difference between term and permanent life insurance?
Term life insurance covers a set period, such as 10, 20 or 30 years, and pays only if death occurs during that term, which makes it the least expensive way to cover temporary needs like a mortgage or children’s education. Permanent life insurance — whole life or universal life — is designed to last for life and builds cash value, at a substantially higher premium. Many families use term for income replacement and permanent coverage for needs that never expire, such as estate liquidity.
| Type | What it does | Where it stops |
|---|---|---|
| Term | Pays a death benefit if death occurs within the term | Ends at term expiration unless converted or renewed at a higher rate |
| Whole life | Lifetime coverage with guaranteed premiums and cash value | Higher cost; loans and withdrawals reduce the death benefit |
| Universal life | Lifetime coverage with flexible premiums | Can lapse if funding falls short of what current interest and costs require |
| Survivorship (second-to-die) | Pays at the second death of a couple, often for estate liquidity | Pays nothing at the first death |
How is life insurance used in estate and business planning?
Life insurance gives an estate or business cash at the moment it is needed, without forcing the sale of a home, a business or other illiquid assets. Common uses include funding a buy-sell agreement between business partners, insuring a key person, equalizing inheritances when one child inherits a business, and paying estate settlement costs. Ownership and beneficiary structure — personally, by a business, or by a trust — changes the tax and legal outcome, so it should be designed with your attorney and CPA.
Why should existing life insurance policies be reviewed?
Universal life policies purchased years ago were often priced on interest-rate assumptions that did not hold, and some are now projected to lapse earlier than the owner expects unless premiums increase. An in-force illustration from the insurer shows how the policy is actually performing today. Reviews also confirm that beneficiaries, ownership and coverage amounts still match current family and business circumstances.
Related: Private Client hub · Umbrella · Employee Benefits
This page is educational and is not tax or legal advice. Policy guarantees depend on the claims-paying ability of the issuing insurer; coverage is determined by the policy contract.