Life insurance helps provide financial security for your loved ones.
Individual Life Insurance policies can also provide benefits, such as tax-deferred savings and estate planning. GEBA's Insurance and Financial Consultants can help you assess your options.
Financial Security and More
Life insurance is an important part of any financial plan. It can provide security for the people you love when you are no longer around. The death benefit is usually federally tax-free and can be used by your beneficiaries for a variety of things, such as paying burial costs and estate taxes, or ensuring that your children have money for college. In addition, you can use life insurance to create a legacy for the people you love and the causes you support.
You may benefit from an individual life insurance policy if you:
- Need higher limits of insurance than are available through your group plan.
- Want to leave a legacy to your children, grandchildren, institutions or charities you support.
- Cannot qualify for group life insurance for health or other reasons.
- Need a permanent death benefit to protect a special needs loved one or to assist in estate planning.
GEBA’s Insurance and Financial Consultants can assist you in evaluating your needs and developing a tailored solution just for you.
Types of Individual Life Insurance
There are two basic kinds of individual life insurance, as shown in the chart below:
Individual Term Life Insurance
These policies last for a certain period of time, usually five to 30 years. Term policies only pay if you die before the end of the term; otherwise they pay nothing.
Term life insurance can offer a cost-effective way to make sure that your loved ones have funding for specific needs, such as college or a mortgage, over a finite time frame if you die. Once these needs have passed, you may no longer need the coverage. The premiums are usually less – and often much less – than premiums for permanent life insurance.
This means you might be able to afford much more coverage than if you bought permanent insurance. Learn More About GEBA's Term Life Insurance>
Permanent Life Insurance
Unlike term life insurance, permanent life insurance covers you for your entire life, as long as you stay current on your premiums. Permanent life insurance is often used for tax and legacy planning as well as for funding trusts for special needs dependents. Most permanent policies have a savings component that allows you to accumulate cash value on a tax-deferred basis. The premiums are higher – and can be substantially higher – than the premiums for term life insurance.
GEBA offers three kinds of permanent life insurance: