Life Insurance
A life insurance policy is really a contract that can help provide security for loved ones. At RBI Services, we want to be your partners in choosing the best coverage for you as our part of that contract.
When selecting life insurance, we carefully consider your needs and goals. Life insurance provide a crucial financial bridge for your loved ones when you are no longer here.
With life insurance, RBI Services provides:
- Term
Term Insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Most term policies have no other benefit provisions.
There are two basic types of term life insurance policies: level term and decreasing term.
- Level term means that the death benefit stays the same throughout the duration of the policy.
- Decreasing term means that the death benefit drops, usually in one-year increments, over the course of the policy’s term.
- Whole Life/Permanent
Whole life or permanent insurance pays a death benefit whenever you die—even if you live to 103! There are three major types of whole life or permanent life insurance—traditional whole life, universal life, and variable universal life, and there are variations within each type.
- In the case of traditional whole life, both the death benefit and the premium are designed to stay the same throughout the life of the policy. The cost per $1,000 of benefit increases as the insured person ages, and it obviously gets very high when the insured lives to 80 and beyond. The insurance company could charge a premium that increases each year, but that would make it very hard for most people to afford life insurance at advanced ages. The company keeps the premium level by charging a premium that, in the early years, is higher than what’s needed to pay claims, investing that money, and then using it to supplement the level premium to help pay the cost of life insurance for older people.
- By law, when these “overpayments” reach a certain amount, they must be available to the policyholder as a cash value if they decide not to continue with the original plan. The cash value is an alternative, not an additional, benefit under the policy.