Term Life Insurance provides coverage for a specified period of time or “term” (usually from 5 years to 30 years).  The premium usually stays the same throughout that specified term and the premium is designed to pay the cost of the insurance only.  There is no separate cash value account building. Once the term has expired, the policy owner will usually let the policy lapse. There are options for maintaining coverage beyond the specific term, but the costs can increase dramatically.  Term insurance is an affordable way to get the maximum coverage for the period of time in which you want to make sure your family or business is adequately protected.   
 
Permanent Life Insurance provides coverage for your entire life as long as sufficient premiums are paid.  Premiums are usually designed  to pay for the cost of insurance coverage, but a portion is also used to build equity in what is referred to as a Cash Value account.  There are many different options with permanent insurance, such as Whole Life, Variable Life, Universal Life, Variable Universal Life, all of which have different designs and objectives for providing insurance as well as a savings option.  Premiums for Permanent Insurance are generally much higher than Term Insurance.
 
DFP Insurance, Inc. is a strong proponent of Term Life Insurance.   We believe that the goal of life insurance is just that, to provide insurance, and not to fund retirement.  Those with a good financial plan should hopefully be in a position at the end of their “Term” that they no longer need life insurance.   Let your independent agent at DFP Insurance, Inc. help you determine what kind of life insurance is best for you.  

If you were to die, consider what your spouse and dependents would need in order to pay off debts, cover day-to-day as well as larger expenses, to live comfortably and have financial stability. Don't forget to include savings for college and retirement. Also consider the effect of inflation over time; the amount needed, say, twenty years from now is likely to be significantly higher than today.  Your independent agent at DFP Insurance, Inc. can help you determine what amount of coverage is right for you.

In addition to being financially secure, the life insurance company you choose should have a good claims payment history, good customer service and competitive pricing. Independent sources such as Standard and Poor's, A.M. Best, Moody's, Fitch, and Weiss rate insurance companies. Their publications may be found in your local library.  DFP Insurance, Inc. represents over 200 of the nation’s top rated carriers.  This allows us to find the best solution for your life insurance needs.

Premium rates for life insurance can vary dramatically and are typically based on factors such as:

• age, sex, height, and weight

• health status, including whether or not you smoke

• participation in high-risk activities or occupations

• the type of insurance (permanent or term)

If you already have a life insurance policy, it's a good idea to review it every few years to make sure it still meets your needs. Check to make sure all beneficiaries and other information are current. If any of the scenarios below pertain to you, it might be time to speak with your representative.

• Were recently married or divorced

• Have a child or grandchild who was recently born or adopted

• Provide care or financial help to a child or parent

• Want to ensure that financial resources are available to provide assistance or long-term care for a loved one

• Purchased a new home recently

• Have children or grandchildren who are about to enter college

• Refinanced your home mortgage in the past six months

• Receive an inheritance

• Retired or your spouse has retired

• Have started a business

You can trade or replace your policy, but you should think carefully before you do. Whether you switch policies within the same company or switch from one company to another, your new policy could be subject to new underwriting which may affect how much you have to pay and the type of coverage you receive. It is important to consider all the options before replacing an existing life insurance policy.  Your independent agent at DFP Insurance, Inc. can help you determine if replacing your existing policy is right for you.