Life Insurance in Oakwood Hills, IL

Life insurance offers financial security and peace of mind to individuals and their loved ones. By acquiring life insurance, individuals can safeguard their families’ futures, helping to ensure they are financially protected in the event of unexpected circumstances.

Located in Oakwood Hills, IL, Smith & Associates Inc is committed to providing the best insurance solutions for your every need. Contact us today to learn more.

What Is Life Insurance and How Does It Work?

Life insurance is a contract between an individual and an insurance company. Generally, an insurer promises to pay a designated sum of money (the death benefit) to named beneficiaries upon the insured’s death. In exchange, the insured pays regular premiums to maintain the policy. The financial payout from a life policy may help cover funeral expenses, outstanding debts and mortgage payments, and may provide income replacement for dependents.

What Are the Three Main Types of Life Insurance?

Understanding the different types of life policies available can help you make the right choice for yourself and your loved ones. Several insurance options may be available to you, depending on the insurer. Below are three common types of life insurance and how each one works.

• Term life insurance—This type may offer a straightforward solution for protecting your loved ones financially if the unexpected occurs. With a term policy, you purchase coverage for a specified term (typically 10, 20, or 30 years). Your beneficiaries may apply for the death benefit if you pass away during the specified term. However, if you outlive the term, the policy expires. There is no cash value to a term life plan.
• Whole life insurance—This insurance is a form of permanent life insurance. Unlike term life, this type may provide lifetime coverage from the moment you enroll until the end of your life, as long as premiums are paid. Since there is no expiration date, you can have peace of mind knowing your policy won’t run out. Whole life policies may also have a cash value component, which may be utilized by the policyholder while still alive.
• Universal life insurance—Universal life is another form of permanent life insurance. This type may offer lifelong protection and flexibility tailored to your changing needs. You can generally adjust coverage and premium amounts as needed throughout the policy term. With this policy, you can enjoy the benefits of cash value accumulation, tax advantages and customizable coverage options. It can provide financial security for your loved ones while offering the opportunity for growth and financial stability throughout your lifetime. Universal life also has a cash value component.

Your agent can help explain these and other forms of coverage that may be suitable for your needs. They can also help you understand the advantages, disadvantages and risks associated with each.

Protect Your Financial Future

Take the first step toward securing your family’s financial future with Smith & Associates Inc. Contact us today to discuss your needs and find the perfect coverage to protect what matters most to you.

We serve the communities of McHenry County, Cary, Crystal Lake, Huntley, Woodstock, Trout Valley and Oakwood Hills, Illinois.