- Hawaii Insurance
- Hawaii Insurance
Life Insurance Agency in Honolulu, HI
The purchase of Life Insurance is an act of altruism and a sign of maturity. Life insurance policies come in many forms but can best be classified into 3 categories; term, whole and universal.
Term insurance can be thought of as renting a set amount of death benefit for specific length of time. This form of life insurance has the lowest cost and premiums can be paid monthly, quarterly, semi-annually, or annually. Term insurance is often purchased by a young couple or a business to cover indebtedness such as a mortgage, etc. should the breadwinner of the household or business pass away.
Whole life insurance can be thought of as owning a policy. Whole life coverage offers fixed monthly, quarterly, semi-annual or annual premiums. Whole life coverage can be paid for in full in a single payment and the beneficiaries will receive the death benefit after the policy holder passes away. Whole life insurance is also often thought of as an investment. Insurance providers that offer whole life pay a guaranteed dividend. An illustration or chart is provided to find out how much a policy will earn over time. Also many companies offer higher dividends that are not guaranteed but historically have been paid to policy holders. Whole life coverage develops a cash value over the term of the policy that maybe loaned against, withdrawn, or allowed to grow.
Universal life insurance offers the permanence of the whole life policy, limited cash value, and a lower cost from the cost of a whole life policy. Think of it as a hybrid between a term and whole life policy. This policy has fixed premiums & guarantees a death benefit for the entire life of the policyholder provided the premiums are paid.
How are these policies used;
A young couple might buy a 30 year term policy prior to signing a 30 year mortgage; ensuring that for the life of the mortgage their spouse can payoff the mortgage as well as replace the deceased spouses income.
A business might purchase a whole life policy on their key employee as a tool to retain someone important to the company. Creating a "golden handcuff" whereby if the key employee stays on board after a pre-determined period of time the key employee is "gifted" the cash value policy as a bonus.
A widow may purchase a universal life policy with the proceeds of her spouses life insurance benefit to create a multiple for her heirs and guarantee that the death benefit is free from creditors or inflation. The death benefit is selected by the insured and won't change over time.
Some people assume that life insurance is only for the wealthy; others avoid getting life insurance because they don't have dependents or children. But the reality is that life insurance is important to have, regardless of your financial circumstances or child-related situation. At Thornton & Associates, we offer life insurance for customers in Honolulu, HI. No matter your budget, we'll be happy to walk you through your options and help you find the insurance plan that's right for you.
At Your Service
At Thornton & Associates, we understand that the process of choosing a life insurance policy can be overwhelming and confusing. That's why we go out of our way to offer world-class customer care. When you work with us, you'll get attentive, personalized service every step of the way. We'll take the time to thoroughly answer your questions and explain how our different life insurance policies work.
Get the protection you need and the peace of mind you deserve. Call us today to schedule an appointment and learn more about our life insurance plans.
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