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Life Insurance Basics
September 5, 2017
Get to know this essential part of your family's financial strategy
When you're sharing your life with your loved ones, you have more than your own life to consider. That's why life insurance is an important purchase. Along with its financial benefits, it's an expression of your love.
Choosing your coverage type
Deciding to buy life insurance is simple. But what kind is right for you? That's a bit more complicated. So let's look at your options:
For basic, relatively inexpensive insurance protection, term life could be a good choice. It provides coverage for a specified period of time, typically for terms of 10, 15, 20 or 30 years. If you die during that time frame, your loved ones receive the death benefit.
The cost of the premium doesn't change during the time period you select. Nor do the benefits (as long as you make the required premium payments). And the younger you are when you buy it, typically the lower the premiums.
Converting term to permanent
Many term life contracts also offer another advantage. It's called a conversion privilege, and it allows you to choose to convert part or all of your coverage into permanent life insurance.
As the name suggests, this is insurance that can cover you for your entire life
(as long as the required premium payments are made). Your beneficiaries receive the
death benefit no matter when you pass on.
And like term life, depending on the type of permanent insurance selected, you can lock in a set premium for a time determined by the contract.
It also has an added benefit called cash value that lets you set aside money on an income-tax free basis. Plus, if you need to, you can access it for emergencies or other opportunities.
Whole & universal
There are many types of permanent life insurance. One type is whole life, which
provides a guaranteed1 death benefit, premium amount and cash value growth.
Another type is universal life insurance. It provides flexibility that may allow you to make changes, such as increasing or decreasing the death benefit or adjusting premium payments while the contract is in force.
So how do you decide which type of life insurance is best? There are a range of factors to consider. Your Thrivent Financial representative can help you determine which type may best fit your family's long-term financial strategy.
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1 Guarantees are based on the financial claims-paying
ability of the issuing insurance company.
This is a solicitation for insurance.
A Thrivent Financial representative may contact you. This contract has exclusions, limitations, reductions of benefits and terms under which the contract may be continued in force or discontinued. For costs and complete details of coverage, contact your Thrivent Financial representative.
THRIVENT FINANCIAL IS THE MARKETING NAME FOR THRIVENT FINANCIAL FOR LUTHERANS.