Category: Life Insurance

Life Insurance with a Cash Value Account Can Help You Save for the Future

Cash value account life insurance provides a death benefit to your beneficiary and a pre-tax way to build savings and investments. Let Morgan Insurance Services help you make the most of your income to save for your future while planning for your estate.

How Life Insurance with a Cash Value Account Works

Each month, you pay a premium on your life insurance. The majority of the premium pays for the policy’s death benefit. This benefit goes to your named beneficiary, such as your spouse. They might use it to pay off your Tampa, FL home or your children’s college.

A portion of the monthly premium goes to the cash value account. Some policies provide a savings account with high-yield interest. Other policies offer an investment account that pays a yield based on an index, such as the Standard and Poor’s. This account requires some time to vest, which typically takes two years. After that time, you can borrow against the balance or use it as collateral for a loan. Some policies allow you to withdraw from the balance, temporarily reducing the death benefit until you repay the funds.

Who Can Use a Cash Value Life Insurance Policy?

Once considered a product for the wealthy, the insurance industry created options for everyone. Many companies now offer this type of policy starting at a death benefit of $75,000. That puts this life insurance into a category that most people can afford.

Choosing a life insurance policy with a cash value account provides you with a pre-tax method of savings to make your Tampa, FL, salary go further. While the IRS does charge tax on withdrawals made before your death, every premium payment you make into your cash value account remains untaxed.

Contact Morgan Insurance Services

Contact Morgan Insurance Services today to learn how to get started with this hard-working life insurance that helps you in two ways. Call or email us to start your policy.

Life insurance is one of the most important purchases you will make. It is a way to financially protect your loved ones if you die. When choosing a life insurance policy, you have two main options: whole life insurance and term life insurance. Both have advantages and disadvantages, so it is essential to understand both before deciding.

What is Whole Life Insurance?

Whole life insurance is a type of permanent life insurance. As long as you pay your premiums, your coverage will never expire. Whole life insurance also has a cash value component. This means that a portion of your premium goes into an account that earns interest. You can use the cash value for supplemental retirement income or pay your premiums if you cannot work.

A Morgan Insurance Services agent can help you understand whole life insurance and whether it’s the right choice for you.

What is Term Life Insurance?

Term life insurance is a type of temporary life insurance. It only covers you for a set period, typically 10-30 years. If you die during the term, your beneficiaries will receive a death benefit. If you don’t die during the term, the policy expires, and you receive nothing. Because it is temporary, term life insurance is typically much less expensive than whole life insurance.

Which One is Right for You?

The type of life insurance you choose should be based on your needs and budget. If you only need coverage for a specific period, such as when your children are young, term life insurance is the better option. If you want coverage that lasts your entire life, whole life insurance is the way to go.

No matter which type of life insurance you choose in Tampa, FL, shop around and compare policies before buying. A Morgan Insurance Services agent can help you find the right life insurance policy for your needs and budget.

When you are looking for life insurance in Florida, the terms can feel confusing and overwhelming easily. There are not that many types of life insurance, but every insurance company may call a rider or add-on something different. That’s where most life insurance consumers get confused.

At Morgan Insurance Services, we want Tampa, FL residents to feel secure and informed in their life insurance selections. Know what types are available to you before you purchase.

Term Life Insurance

Term life insurance is among the most affordable kinds of life insurance coverage. It provides a one-time death benefit plus some living expenses in the event of your death.
It is a temporary coverage for a set term, and has no cash value. It is meant to cover temporary expenses after you die.

Whole Life Insurance

Whole life insurance is a kind of life insurance that is also permanent life insurance. The policy holder will have this insurance for the duration of their life.

It is a policy that will build in cash value, and your premium costs will never change. This cash value will accrue interest every year and this is tax deferred income for the policy holder.

Universal Life Insurance

Universal life insurance is like a combination of term life insurance and permanent life insurance. It can last the life of the policy holder, but it doesn’t always. 

It will have a cash value, but it will also have annuities attached to it. The cash value of the policy can be accessed by the policy holder at any time.

Get a Quote

When you are looking for life insurance, it’s easy to get confused. At Morgan Insurance Services, we want Tampa, FL residents to feel secure in their life insurance choices. Call us for a quote today.

Life insurance is a significant financial product. You need life insurance to protect the financial security of your family in Tampa, FL. We offer life insurance policies at Morgan Insurance Services.

The following are three situations where your life insurance needs change.

One of your dependents becomes independent.

If one of your dependents leaves home and gets a job, he or she may no longer be financially dependent on you. This means that you won’t need as much coverage as you did previously. 

You get married

Getting married changes life insurance needs for numerous reasons. You may want to provide coverage for your spouse. If your spouse depends on yours, you’ll need to increase your coverage amount when you get married.

Alternatively, getting married might bring down your life insurance coverage needs if your spouse brings in a considerable income to support your family. Discuss your financial and life insurance situation with your new spouse to determine how to change your life insurance coverage. 

You have a child 

Having a child means that you have another dependent who you need to provide financial support. Having a child, therefore, increases your need for life insurance coverage. When you have a child, you may want to change your life insurance policy to enjoy more life insurance coverage.

Having a child increases how much coverage you need and how long you will need coverage for. A child means you’re likely to need coverage for the next 18 years or more. 

You need to learn as much as you can about life insurance before purchasing a policy in Tampa, FL. If you’re looking to learn more about life insurance, we can help. Contact us at Morgan Insurance Services to learn more.