CIA Insurance Services

Life Insurance

What is Key Man Life Insurance? Why do I need it?

• Provides money to survivors, helps with business continuation, benefits are non–taxable
  
• Life Insurance for a specific length of time, 1, 5,10,15, 20, 30 year terms area available
  
• Premiums are based on age and health
  
• Premiums stay the same throughout the term, but older people will pay more than younger ones.
  
• No guarantee of issuance, get it when you don’t need it.
  
• No cash value at end of policy if you are still alive
  
• Least expensive type of Life Insurance policy
  
• Can be renewed after term expires at revised rates based on age

What is Whole Life Insurance? Why do I need it?

• Similar to the above but the policy runs until death or an attained age such as 100.
  
• Cash value builds up over time and is payable to you upon cancellation or attained age.
  
• Premiums stay the same throughout the term
  
• Costs more than Term Life but offers more
  
• Pays dividends which you can take or reinvest in the policy, increasing benefits
  
• Variations include Universal life, Variable Universal Life, these offer greater benefits but also more risk

What is a waiver of premium?

• An option that waives future payment of premium should you become disabled for at least six months.

This is only a general summary of the coverage of this type of policy. You should refer to the actual policy for coverage limits, exclusions and other conditions.