Here at Melton-McFadden Agency, we offer several different types of life insurance policies in Michigan to individuals and families based on their specific needs. These include term life, whole life, universal life, variable whole life, and variable universal life policies, each of which comes with its own advantages.
Term life insurance, also known as term assurance, is life insurance in Michigan that offers coverage set at a fixed rate of payments for a limited-term, with affordable rates available. Following the relevant term, the rate of the premiums will likely change, but it remains one of the most affordable forms of life insurance available in Michigan if you’re looking for a substantial death benefit with a fixed rate over a certain period of time.
In Michigan, universal life insurance is a kind of cash value life insurance where the excess of premium payments higher than the current cost of insurance is credited to the policy’s cash value, which is credited every month with interest.
Also known as whole of life insurance, whole life insurance is a policy that guarantees coverage for the insured party’s entire lifetime, as long as premiums are paid when due. The insurer agrees to pay the death benefit of the policy to designated beneficiaries following the insured’s death.
In Michigan, variable whole life insurance policies are permanent life insurance policies that include an investment component in the form of a cash-value account, which the insured party invests in several available sub-accounts. The main appeal of this policy is the fact that there are certain tax benefits that come with it, as the annual growth of the cash value account is non-taxable.
The basic principles of this are the same as variable whole life insurance, but the “universal” aspect applies to the level of flexibility that the owner has when making payments on premiums. Premiums can be anywhere from nothing to a maximum that the Internal Revenue Code has in place.
If you would like to get a quote for any of these types of life insurance policies in Michigan for you and your family, contact Melton-McFadden Agency today and we’ll provide you with a policy that works best for you, based on your specific needs. We can also discuss other types of insurance coverage that we can provide.
Michigan Life Insurance FAQ:
How much life insurance do I need?
When it comes to life insurance, this might be the most prominent question people have – and the issue is, there’s no definitive answer. Life insurance isn’t like car insurance, as it’s a bit more elaborate. Just because there’s no crystal clear answer to how much life insurance you need doesn’t mean you can’t do some calculations.
There are a lot of things that go into determining your optimal life insurance, such as:
- Your annual income
- Your debt
- Your mortgage
In general, the optimal amount of life insurance is six to ten times your annual salary. However, you can always contact us today and get professional help when it comes to determining the best amount of life insurance for your specific needs.
How is life insurance paid out?
That generally depends on the life insurance firm you’re working with. While some will pay it out in installments, others will give a one-time sum. In most cases, insurance companies will ask you to provide your preference as to how the money will be paid out when it’s due.
Furthermore, life insurance money is income tax-free, meaning that your beneficiaries aren’t going to have to worry about taxes once they collect your life insurance.
Do my children need life insurance?
The answer to this question depends on many factors. Does everyone in the world need life insurance? No. Should everyone in the world have at least some form of a basic life insurance plan? Most definitely.
The life insurance premium on children is usually far cheaper than the ones on adults, as children tend to be younger and healthier. Furthermore, getting someone life insurance while they’re young saves them money later down the line as they have to pay a smaller premium.
Lastly, getting your child some life insurance is an outstanding way to give them some financial security. If they’re seeking a loan later in life, they can borrow money from their life insurance fund, which saves them a lot of trouble compared to more traditional loans.
What do I need to change my beneficiary?
If you’ve got yourself a nice life insurance policy but want to change the beneficiary, the process is far simpler than you might imagine. If you want to change the beneficiary while Melton McFadden insures you, all you need to do is give us a call, and we’ll be more than happy to change your beneficiary. Now, while we can’t do everything over the phone, we can certainly walk you through the process.
At what age should you get life insurance?
This question is very simple – whenever you want life insurance, you should get life insurance. It’s never too early or too late to get yourself a nice life insurance policy, as the pros of having one outrank the cons.
Furthermore, the earlier you start, the lower your premium will be, so it’s always best to get life insurance policies before any issues arise.