LIFE INSURANCE

Life Insurance is a contract between you, as policy holder, and an insurance company where the insurance company agrees to pay a lump sum of money (called the death benefit) to the policy holder if the insured dies in exchange for the regular payment of premiums on the policy. There are four parties to a life insurance contract: 1) Insurance Company - The entity that provides the life insurance and is obligated to pay the death benefit; 2) Policy Holder - the owner of the policy and person responsible for paying the premiums, 3) Insured - the one whose life is being protected by the insurance, and 4) Beneficiary - the one who receives the death benefit.

BRIEF OVERVIEW:*

WHOLE LIFE
a/k/a PERMANENT

Whole Life Insurance, also known as permanent life insurance, provides coverage for the insured’s entire lifetime, as long as premiums are paid.

Key Features include:

Lifelong Coverage – The policy remains in effect for the insured’s entire life and is guaranteed renewable each year.
Fixed Premiums – Premiums remain consistent throughout the life of the policy.
Cash Value Component – A portion of each premium goes into a savings-like account that accumulates cash value over time. This cash value can be:
- Borrowed against as a loan.
- Withdrawn (potentially reducing the death benefit).
- Used to pay future premiums.
Guaranteed Death Benefit – The payout to beneficiaries is predetermined and does not decrease as long as premiums are paid.
Dividends (for Participating Policies) – Some whole life policies, may pay dividends, which can be reinvested, used to reduce premiums, or taken as cash.

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TERM LIFE

Term Life Insurance is a type of life insurance that provides coverage for a specific period (or "term"), such as 10, 20, or 30 years. If the insured passes away during the term, the policy pays a death benefit to the beneficiaries. If the term expires and the policyholder is still alive, the coverage ends unless it is renewed or converted into a permanent policy.

Key Features include:

Fixed Coverage Period – The policy lasts for a set term (e.g., 10, 20, or 30 years).
Lower Premiums – Compared to whole life, term policies are much more affordable, making them ideal for those seeking high coverage at a lower cost.
No Cash Value – Term policies do not accumulate cash value. It is purely a death benefit protection.
Renewability & Convertibility – Some policies allow renewal at the end of the term (often at a higher premium) or conversion into a permanent life insurance policy.

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The Gift of Life Insurance

Life insurance is one of the best ways to protect those you love should tragedy strike. It allows the grieving process to take place without having to worry about the financial burdens caused by a death.

Many employers offer life insurance as part of their benefits package, which is great—but there’s a catch. That coverage typically ends when employment ends, and rarely does anyone stay with the same employer throughout their lifetime.

As we age, securing life insurance becomes more expensive and it can become more challenging simply due to living life. Things such as sports or work injuries, health issues, smoking, and drugs and alcohol, can all impact eligibility and affordability. This is why The C3 Agency recommends purchasing an individual policy before life throws you a curve. Whether it's a term policy or a whole life policy, protecting the ones you love by safeguarding the future with the Gift of Life Insurance is a smart decision. We are here to help.

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