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Life Insurance

There are many milestones in life, which can make you think about the security of your loved ones. In the event of your passing, a life insurance policy will provide vital financial support to your family and other dependents. 

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What Does Life Insurance Cover?

Life insurance typically covers most causes of death such as accidents, illness, natural causes, and more. In some cases, people with pre-existing conditions may still find life insurance coverage. Coverage availability and limits for higher-risk individuals will differ from company to company. The best thing to do is to shop around to see what type of coverage you can receive.

Below are the different types of life insurance policies one may consider.

1  —

Term Life Insurance

Term life insurance is the most affordable type of coverage you can buy. It provides a death benefit for your beneficiaries if you pass away during the number of years specified in the policy.

2  —

Whole Life Insurance

Whole life insurance is a type of permanent life insurance. You must pay premiums for the duration of your life if you have a whole life policy. Think of it as a savings plan because you can use the tax-deferred cash value for many purposes.

Your Cash Value is the amount of money you have invested in your policy. It is a separate amount from the death benefit and is meant to be drawn upon while you’re still living, rather than being paid out in the event of your death. It is similar to a savings account built into your whole life policy.

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Universal Life Insurance

Universal life insurance is a hybrid form of life insurance that combines both term and permanent insurance. This type of policy offers the ability to withdraw from the cash value at any time. Like whole life, this option allows investors to build up cash value and receive dividends.


However, unlike whole-life policies, universal policies allow you to choose your own rate of return for your savings component and can be used as an estate planning tool since it allows for tax-free withdrawals from the cash value component.

What is Life Insurance? How does it Work?

When you purchase life insurance, you can protect your family’s financial future if something unexpected were to happen to you. Life insurance helps your loved ones by providing support during difficult times and allows them to pursue their goals and dreams.

To qualify for life insurance, you must complete an initial application that includes a phone screening and medical examination to determine your health status, including any chronic or pre-existing conditions. Once you finalize how much life insurance you need, your rate is set and you must continue paying your premium to keep the coverage in place.

If something happens to you, your life insurance policy benefits will be paid to the beneficiary of your choice. They can choose from one of two payment options: a lump sum or annual payments over time. Both methods incur no tax penalties.

Let's Talk Numbers

Total Auto Premium Saved by Cranbrook Clients

USD $25,000

Average Annual Auto Insurance Premium Discount

USD $1,500

Average Time to Find Best Auto Insurance Policy Using Cranbrook

2 Minutes

© 2023 by Cranbrook Agency.

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