Life Insurance

Serving the Chicago Metropolitan Area
Quick Quote

The main purpose for buying Life Insurance is to compensate for the losses occurring to family members or business partners caused by the death of a person who generates income on which the survivor's depend. There are many different circumstances which make it desirable to carry Life Insurance policies and therefore there are a great number of different types of contracts available. Among the most popular ones are:

TERM LIFE

This is a policy that is taken out for only a limited number of years, sometimes just for one year, called a One Year Term Policy". These policies are designed to help an applicant to take care of a very special need that will be of a relatively short duration. Examples: Repayment of a loan including a mortgage; Taking care of College Expenses while the child or children are in school and the father's death would have them cut short their studies; Special obligations taken on by a person for a limited term, such as Chief Executive Officer of a Corporation which wants to protect itself because the expertise of the CEO seems irreplaceable in case of his death and many other similar circumstances.

The Term Policy is a "pure protection" type of life insurance. There are no Cash Values and loans cannot be made against the policy. Because of this, Term Insurance is the lowest cost available policy. At the end of the term, it expires, just like an automobile policy; if you were fortunate enough to live out the term, there is no more coverage, but in many cases, during the life of the policy, it may be extended for another term at a higher price since premiums are based on the age of the insured. In many cases, it may even be exchanged into a permanent form of insurance.

 WHOLE   LIFE  INSURANCE

This policy is the basic type of Life Insurance designed to be kept for as long as a person lives. Once it starts, the premium will never change regardless of the age of the policyholder. Because theoretically as people get older and come closer to death, the premium should go up each year, in order to arrive at a reasonable premium that is affordable the whole life policy in fact averages out the expected premiums at all ages. This creates a surplus premium in the early years and some of this surplus is held in reserve for the policyholders should they want to discontinue their policy or if they want to make a loan against these funds.

 UNIVERSAL LIFE

This policy in fact is a combination of Term, Whole Life and Investments. It is very flexible since it permits premium and benefit changes by the policyholder. The holder of a universal life policy makes an initial premium payment of a specified amount. Thereafter, the policyholder can pay whatever amounts at whatever times, he or she wishes- or even skip payments as long as the accumulated cash value covers policy charges. An advantage of this type of policy is that the policyholder has the discretion to change the level of death benefits. Increases may, however, be subject to new underwriting requirements.

 EMPLOYEES BENEFIT INSURANCE
(GROUP LIFE INSURANCE)

This is a policy issued to an employer covering all or selected employees under one policy. It is available both for Life and Health insurance. Usually the premiums are on a payroll deduction arrangement and when an employee leaves the firm the policy as a rule can be converted into an individual policy.

Community Insurance Center, Inc.
526 East 87th Street - Chicago, IL 60619
(773) 651-6200 Fax: (773) 651-8264
E-mail: sales@communityins.com