Life Insurance Services From Malibu, CA

A life insurance policy is simply a promise, as a life insurance company promises to pay a death benefit upon the death of the insured in exchange for a premium – an amount of money you contribute to the general fund of the insurance company. The promise is a legally enforceable contract. Our life insurance services from Malibu, CA, can help clients from Los Angeles to Calabasas, CA, find what kind of life insurance is right for them.

Term Insurance

Term life insurance expires after a certain amount of time. Even if a policy is “guaranteed renewable,” it’s only renewable until you reach a certain age. After you reach that age, then you can’t buy any more term insurance. This age is determined by state law, so it may be different in Central California than in other parts of the country.

A term insurance policy will only pay a death benefit if the insured dies during the term. Die one day after the policy expires, and your beneficiaries are out of luck.

Only a small percentage of term insurance policies ever pay a claim. But their affordability and the fact that a very small amount of monthly premium will buy a truly life-changing death benefit to protect widows and orphans (if the insured is reasonably healthy when they buy the policy) make term life insurance a must-have for any family breadwinner who can qualify. To learn if you meet these qualifications, contact our life insurance services in Malibu, CA, for more details.

Whole Life Insurance

On the other hand, whole life insurance is designed to pay a death benefit – even if the insured lives well beyond life expectancy. Their permanence is what allows the life insurance carrier to make the cash value available to the policy owner: The carrier knows that any advances or loans are secured by the eventual death benefit. There are several ways that permanent life insurance can be structured.

Each of these types of whole life insurance policies will build cash value over time, and you can access the cash value for any purpose – tax-advantaged – as long as you don’t borrow or withdraw so much that the cash value reaches zero and the policy lapses. Lapsed policies carry some nasty tax consequences that we’ll deal with later in the chapter. But as long as the policy doesn’t lapse and remains in force to pay a death benefit or be converted into an annuity, you can still enjoy the powerful tax advantages of the life insurance contract.

Equity-Indexed Universal Life Insurance From Malibu, CA

Our life insurance services from Malibu, CA, can also help you with equity-indexed life insurance. This variety of insurance is unique in that it is connected to the stock market and does not have a fixed interest rate, among other distinct features. However, these distinctions make equity-indexed universal life insurance considerably more difficult to understand and manage than other forms of insurance. With the aid of Malibu Wealth Planning’s experienced life insurance consultants, you’ll be able to navigate this type of insurance far more easily.