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Insurance Myths

Myth #17: If I’m not at fault in an accident, the other person will pay.
This assumes he has coverage. Some people have no insurance or only minimal insurance that won’t cover damage they cause to others. Even if you sue them, you may not be able to recover damages. The best way to protect yourself is having good limits on your own policy for the specific parts that cover being hit by an “uninsured" or “underinsured” driver.

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Term vs. Permanent Life Insurance

What's right for you?

The decision to protect your loved ones is easy. Where people sometimes struggle is deciding whether they want term or permanent insurance. Your decision will be guided by want you want it to accomplish for those you’re protecting and will balance the factors of:

  • Cost
    What you pay for the protection.
  • Time
    How long you will be insured.
  • Face Value
    How much money your beneficiaries receive upon your death.
  • Cash Value
    How much money can be received by withdrawing, borrowing or cashing in the policy.

Your Morris Insurance trusted associate will help you determine what makes the most sense based on your overall needs and budget. It may turn out that the best solution for you is a combination of the two types using term insurance to protect for short-term expenses and permanent insurance policy for long-term concerns.

Term Life Insurance

  • Least expensive life insurance protection since there is no “cash value” component.
  • Best for filling a temporary obligation, i.e. mortgage, supporting children until they can become financially independent, college tuition, etc.
  • Available in 5, 10, 15, 20 or 30 year "terms". Get protection for exactly the time you need.
  • Level premiums guaranteed not to increase during term.
  • Generally flexible payment schedule monthly, quarterly, semi-annual or annual.
  • Can’t be canceled as long as you pay your premiums.
  • Pays a death benefit to your beneficiaries, which is generally income tax free.
  • Can convert some term policies into a permanent policy so use it as a starter for getting the coverage you need now and later convert it so that you can build “cash value” for the future.
  • May have the option of guaranteed renewal, which allows you to extend coverage beyond the initial term. The rate may change, but this feature can be very important if you should be come uninsurable during the policy term.

Permanent Life Insurance

  • Doesn’t expire and offers lifetime protection.
  • Can build tax-deferred cash value depending on how you set up your policy.
  • Pays a death benefit to your beneficiaries, which is generally income tax free.
  • Ability to access cash value either through withdrawals or loans to help with education, emergencies or as retirement income supplement.
  • Can cancel at anytime and receive the current cash
  • Option of choosing a “universal life” policy which can provide additional flexibility allowing you to make withdrawals or skip payments as long as the cash value of your account is sufficient to cover the insurance costs.