Life Insurance Tualatin, OR
If you were to pass away unexpectedly, how would your loved ones pay for monthly expenses without your income? At Schmidt Insurance Group, we are licensed experts who can help you make smart decisions about the life insurance coverage you need to protect your family, your property, and your business.
Schmidt Insurance Group opened its doors in 2019 with a goal of making insurance easy while providing exceptional customer service. We proudly serve the local Portland area and all of Oregon and Washington. Our office is full of born-and-raised Oregonians!
Different Types of Life Insurance
Life insurance is an agreement between you and a life insurance company. In exchange for paying them premiums every month or quarter, the company agrees to pay your beneficiary a set amount of money in the event of your death.
There are two main types of policies to consider:
Term Life Insurance
This is the simplest type of life insurance to understand, and usually the least expensive because it has an expiration date. Term life insurance protects you for a set period of time, or a “term.”
As the policyholder, you will typically choose a term of 10, 20 or 30 years, and the cost, or premium, will remain the same throughout the term. If you die within the term, your beneficiaries will receive the payout, called the death benefit. Once the term ends, so does your coverage. If you still want insurance, you’ll need to shop for a new policy.
Most term life insurance policies can be converted (age limitations often apply) to a whole life policy if your temporary needs become lifetime needs.
Why choose term life insurance? If you just want to cover expenses for your family, term life insurance is probably your best bet. If budget is a concern, definitely go with term life insurance; it’s the most affordable option.
Whole Life or Permanent Life Insurance
Whole, or “permanent,” life insurance lasts for a lifetime (as long as you keep paying the required premiums). From each payment you make, the insurer sets aside a portion of it in an investment account and this becomes your policy’s “cash value.” Upon your death, a guaranteed benefit will be paid to your designated beneficiary.
The cash value grows slowly, tax-deferred, which means you won’t have to pay taxes on any gains while they’re accumulating. You can borrow money against the policy’s cash value, often at a favorable rate, or surrender the policy to collect the cash. If you don’t repay your policy loan with interest, you’ll reduce your death benefit. If you surrender the policy, you will no longer have coverage.
Why choose whole life insurance? If your estate will be subject to estate taxes, a whole life policy can help cover that expense. If you want to build cash value, choose whole life insurance.
If buying life insurance is on your wish list in Tualatin, OR, let Schmidt Insurance Group help you choose the best coverage. Stop in today and introduce yourself, or give us a call at (503) 206-0881 for answers to all of your questions..
