The Right Insurance for Your Needs
The Right Insurance for Your Needs
Securing Your Loved One’s Future Through Life Insurance
Securing Your Loved One’s Future Through Life Insurance
J&B Insurance Specialists is a life and health insurance broker licensed in California and Maryland. We help those with high health risks acquire life insurance, individuals enroll in Medicare, and families strategize a plan for college funding. Our agency works with more
than 200 insurance companies.
You purchase life insurance for a specific time period, which may be anywhere from 5 to 30 years. Premiums are paid for the entire length of the policy; once the term expires, so does the policy. If you pass away before the term ends, the policy pays a death benefit to your beneficiaries.
Term Life
Term Life
Generally, term life is the most affordable type of life insurance when it comes to costs. Premiums are based on your health and the amount of coverage you choose. The younger and healthier you are, the cheaper the coverage is likely to be. Term life can be
categorized into the following:
Level Term
Level Term
Your premium and death benefit will not change for the entire length of the term, whether that is 10, 20, or even 30 years.
Annual Renewable Term
Annual Renewable Term
The death benefit remains unchanged throughout the term, but the contract renews annually, usually with an increase in premium each year. Premiums may be less in a level term policy initially. However, it can become costlier over time.
Decreasing Term
Decreasing Term
Each year, the death benefit decreases while the premium stays the same. The policy ends when the death
benefit reaches zero.
Advantages of Term Life Insurance
Advantages of Term Life Insurance
Term life policies give you the liberty to buy only the coverage you need.
Disadvantages of Term Life Insurance
Disadvantages of Term Life Insurance
There will be no accumulated cash value in term life policies. Another drawback is having only a specific term. Let’s say you purchase a 20-year term policy and you decide you’d like to extend your coverage, it might be difficult to request for an extension once
the 20-year coverage is over.
Some of these difficulties include undergoing proof of insurability, renewing at a significantly higher premium, and being denied of additional coverage altogether.
Universal Life
Universal Life
Universal life insurance is a type of permanent insurance that offers lifetime coverage, plus a cash-value component. You don’t have to select a specific term and put all of your premiums towards the policy as a portion of your premiums will go directly into a cash account in the policy. This cash account earns interest and accumulates tax deferred.
Advantages of Universal
Life Insurance
Advantages of Universal
Life Insurance
Universal life insurance is a more flexible option than term life. Since it has a cash component, making premium payments can be put to a halt as long as the cash value can cover the insurance cost. Over time, you may also be able to adjust the death benefit. Additionally, tax-free loans may be taken against the
policy’s cash value.
Disadvantages of Universal Life Insurance
Disadvantages of Universal Life Insurance
Universal life insurance tends to be more expensive than term life since it offers permanent coverage. Although the added costs will be in the form of building cash value, rates earned on that money may be less than what you’ll get when you invest on mutual funds or stocks.
This is the primary reason why many financial professionals recommend buying term and investing the difference. This setup allows you to still purchase a death benefit while having the liberty to invest the difference anywhere you wish. There are Index Universal Life Insurance that is much more robust for investing side. We can help you with that as well.
Whole Life Insurance
Whole Life Insurance
As the name implies, whole life insurance is meant to cover you for your whole life. Whole life has a cash-value component, just like universal life insurance. In most cases with a whole life policy, the premium and death benefit are fixed. The younger you purchase coverage, the lower your premiums are likely to be.
Whole life is often marketed to parents as an investment for their young children, on the premise that they can lock in coverage while they're young, making it more affordable once they become adults.
Service Areas
Service Areas
We proudly serve clients in Maryland and California.