One of the most common questions we get at JRC Insurance Group is, “What is life insurance?” Life insurance is designed to protect a family, a mortgage, or a business from debt or loss of income in the event of someone passing away.
How Does it Work?
Every life insurance contract has an “insured” person and one or more beneficiaries. If the insured dies while coverage is in place, the insurance companies pays a death benefit (typically a lump sum of money) to the named beneficiary.
Also be sure to see our article: Life Insurance Basics
Reasons to Buy Life Insurance:
Why might someone buy life insurance? The most common reason people buy life insurance is to protect their family. If you or your spouse were to pass away, how would your bills get paid? Would your family lose the house, or would your children be able to attend college? If your loved ones would suffer from a financial lose if you passed away, you are a candidate for life insurance.
Life insurance is designed to replace lost income, or to pay off debt. Another common reason for life insurance is to protect a business. If your business partners would suffer a financial loss in the event of your passing, an insurance policy to protect your business partners from this unforeseen loss would be considered a “key-man” policy.
Businesses can also utilize life insurance for “buy-sell” agreements, or to buy out a business partner’s share in their collectively owned company in the event of a business partner’s passing. This money is typically paid to the insured’s surviving family in exchange for their share of the company’s equity.
Life insurance is also used to secure a SBA loan from a bank. We have dozens of clients who have purchased life insurance to back-up a loan to purchase everything from Country Clubs on Golf Courses to dental offices. In addition, life insurance is also used to protect your co-signers from personal debt like student loans.
Types of Life Insurance:
Life insurance can be purchased as a “term”, or a period of 1 to 30 years where the rates are guaranteed not to change (see our articles answering the question “what is term life insurance ?”) or as a Guaranteed Universal Life policy where the rates are guaranteed until age 90, 95, 100 or even 121.
Life Insurance can also be purchased as Whole Life insurance, which has a cash value, but it is not usually recommended due to the cost, and as Universal Life. Universal Life is not recommended by most financial experts however. This is due to the overall low return of investment on these products and high costs. What is Life Insurance? Life insurance can be used for a variety of financial goals, but life insurance is not typically a good vehicle for investment.
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Invitation for application for life insurance on jrcinsurancegroup.com are made through its designated agents, L. Ramon Summerour, Justin R. Nelson, Jason B. Dana, or Clifford J. Pendell only where licensed and appointed. All applications in the state of California will be submitted by JRC Insurance Group DBA JRC Life Insurance Services, California Lic. #0K09143. L. Ramon Summerour, Justin R. Nelson, Jason B. Dana, and Clifford J. Pendell are licensed life insurance agents in 48 states and Washington DC. The following agent license numbers are provided for L. Ramon Summerour as required by state law: CA Lic. #0D47717, LA Lic. #297729, MA Lic. #1776910, MN Lic. #20371986, UT Lic. #196986, TX Lic. #1200977, AR. Lic. #252009. The following agent license numbers are provided for Justin R. Nelson as required by state law: CA Lic. # 0E76438, LA Lic. #403858, MA Lic. #1873611, MN Lic. #40004760, UT Lic. #260684, TX Lic. #1337240, AR. Lic. #315869. The following agent license numbers are provided for Jason B. Dana as required by state law: CA Lic. #0G18647, LA Lic. #473851, MA Lic. #1860441, MN Lic. #40133063, UT Lic. #298896, TX Lic. #1512814, AR. Lic. #340878. The following agent license numbers are provided for Clifford J. Pendell as required by state law: CA Lic. #0H80157, LA Lic. #558590, MA Lic. #1914591, MN Lic. #40283975, UT Lic. #418060, TX Lic. #1756474, AR. Lic. #404450. Additional licenses are available upon request. Commercial use by others is prohibited by law. This site provides term quotes. Each rate is shown based on information provided by the carrier. No portion of jrcinsurancegroup.com may be copied, published, faxed, mailed or distributed in any manner for any purpose without prior written authorization from the owner.
Life insurance policies described, quoted, shown, and illustrated throughout this website are not available in all states and may include those issued by: American General Life; Banner Life Insurance Company, Urbana, MD, and William Penn Life Insurance Company, Garden City, NY, both Legal & General America companies; United of Omaha Life Insurance Company, Omaha, NE, a Mutual of Omaha affiliate company; Fidelity Life Association, A Legal Reserve Life Insurance Company, Oak Brook, IL; Genworth Life and Annuity Insurance Company, Lynchburg, VA and Genworth Life Insurance Company of New York, New York, NY, member companies of Genworth Financial, Inc.; Lincoln Life & Annuity Insurance Company of New York, Syracuse, NY and The Lincoln National Life Insurance Company, Fort Wayne, IN, both insurance company affiliates of Lincoln National Corporation, whose marketing name is Lincoln Financial Group; First MetLife Investors Insurance Company, New York, NY, MetLife Investors USA Insurance Company, Irvine, CA and Metropolitan Life Insurance Company, New York, NY, all three members of the MetLife family; Protective Life and Annuity, Birmingham, AL; Pruco Life Insurance Company, Newark, NJ and Pruco Life Insurance Company of New Jersey, Newark, NJ, member companies of Prudential Financial, Inc. Newark, NJ; VOYA Life Insurance Company, Minneapolis, MN, VOYA Life Insurance Company of New York, Woodbury, NY and Security Life of Denver Insurance Company, Denver, CO, member of the ING family of companies; Transamerica Financial Life Insurance Company, Harrison, NY, and Transamerica Life Insurance Company, Cedar Rapids, IA, both AEGON companies.
Rates and time taken to qualify and purchase a life insurance policy vary by product and underwriting requirements.