Life Insurance

We can help you choose the right life insurance plan in Washington.

Life insurance acts as a contract between an insured person (the policy holder) and an insurance company, where the insurance company promises to pay a selected beneficiary a sum of money (listed as “benefits) upon the policy holder’s death. Depending on the contract selected, other events such as terminal illness or critical illness may also receive a payment to the policy holder or their beneficiary. The policy holder will pay a premium, either in regular installments or a lump sum. Other expenses such as funeral expenses are often included in the benefits, but be sure to review your specifics with a licensed agent.

People buy life insurance for many reasons. Often it is purchased by the policy holder to offer peace of mind to the beneficiary in the event of their untimely death. As such, it would alleviate any financial hardships they may endure as a result of their passing.

Something else to discuss with your licensed insurance agent is the possibility of a life insurance policy to act as payouts during retirement. Be sure to have your agent explain the benefits and drawbacks of such a program.

Life insurance policies are legal contracts and carry terms that describe the limitations of insured events. Exclusions will apply in many cases limiting the liability of the insurer such as suicide, fraud, war, riot and civil unrest. Consider all of these items carefully prior to purchasing a policy.

There are Two Main Categories for Life Insurance:

• Permanent – Whole life, universal life and variable life are types of permanent insurance.  These policies develop cash value which you can use while you are alive.
• Term – Within this category you will find annual renewable term, decreasing term (some call this mortgage insurance) and then there is level term where the premium and death benefit are level for a certain period of time such as 5, 10, 20 and 30 year.

Besides the type of policy, there are other areas to consider…do you want waiver of premium in case of disability? Are you concerned about convertibility in the future?

To find out more about life insurance and what policy may be best for you, contact a licensed agent today at Michelman Insurance Group at 425-398-1234.