Posts Tagged ‘Whole Life Insurance’

Getting a Life Insurance Quote can be a dull, boring and even a depressing process. First you need to talk about dying, which nobody enjoys talking about. Then you need to discuss all of your personal financial information with your agent, which is usually another unpleasant discussion. Lastly you need to tell your agent of any medical condition you had from when you were born! For these 3 reasons I can see why many people are now going online to purchase life insurance. You give your information to either a stranger or an online website and get quotes kicked back to you instantly. Now as easy as that sounds I don’t always recommend buying life insurance online. You can buy your life insurance online but it needs to be from an Independent Insurance Agency that can access multiple companies and an Insurance Agency that understands the correct type of coverage that you need.  The most common and most affordable life insurance you can get is Term Life Insurance. Typically a Term Life Insurance Quote will be a 10, 20 or 30 year term life insurance quote. This simply means the rate is locked in for a 10, 20 or 30 years and usually renewable after that term until age 95 (but the premium will drastically increase after the term). The other form of Life Insurance is called permanent life insurance. This type of insurance usually consists of Whole Life Insurance or Universal Life Insurance. These types of life insurance policies are always more expensive than term life insurance but also has many additional benefits such as a cash value that you can access in case of emergency or actually subsidize your retirement accounts once you reach retirement age. Permanent Life Insurance isn’t always the best fit for a client but many times will serve a great purpose in life insurance planning.

Since I handle the Property Casualty Insurance for many businesses, something I come across a lot is the need for a Buy Sell Life Insurance contract or a Key Person Life Insurance contract. These are more advanced contracts that usually involve the clients attorney but are extremely important to the survival of a business if an owner or key person dies. For a Buy Sell Life Insurance contract usually what happens is that they have a legal contract (Buy Sell Agreement) that states if one of the business partners passes away that the surviving owner has to pay either his estate or his spouse a pre-determined amount within a certain period of time after his or her death. So when you write the life insurance, you put 2 life insurance policies on both owners (or as many owners as there are) and the beneficiary is the other owner(s). The death benefit is usually the same as the amount stated in the buy sell agreement so that the partner can immediately pay off the estate or spouse upon the death of the partner. Key Person Life Insurance is a little more simple. This type of contract is simply put on a key employee in the business, not necessarily the owner but a person so valuable that the company will struggle financially if he or she were to die. This provides an amount suitable for the company to either find a replacement or spend time and money training another employee to assume the new role.

If you are a business owner or someone that needs life insurance please give us a call. I have been working with individuals for over 7 years in Business Life Insurance, Business Property Casualty Insurance and Health Insurance.

Cranson Insurance Agency offers Oakland County Life Insurance Quotes, Michigan Life Insurance Quotes, Buy Sell Life Insurance and Key Person Life Insurance Quotes in the entire states of California, Illinois, Indiana, Ohio, Oklahoma and Missouri.

Bryan Cranson is the owner of Cranson Insurance Agency specializing in business insurance quotes, workers compensation insurance quotes, health insurance quotes, disability insurance quotes and life insurance quotes in Oakland County, Washtenaw County, Kent County, Cook County and Wayne County, plus the entire states of Michigan, California, Illinois, Indiana, Ohio, Oklahoma and Missouri.

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