Understanding Universal Life Choices

There are four categories of universal life insurance, which are 1) standard non-guaranteed; 2) non-lapse guaranteed; 3) indexed, and; 4) variable. Be sure to talk with your agent at Castillo & Associates Insurance, serving Tucson, AZ and the surrounding area to get a full explanation of the details and help with all your life insurance needs.

Here is a brief explanation of the different types of universal life insurance.

Standard Non-Guaranteed Universal Life

This traditional form of universal life does not have a guaranteed level premium. Over time the premiums increase. It has a cash value and an interest rate return that adds to the cash value. It compares with term life insurance more than with whole life because most do not use this type of universal life policy as permanent insurance for the entire lifetime of the insured.

Non-Lapse Guaranteed Universal Life

This type of universal life is similar to the standard type in that it builds cash value over time and has an interest rate return that adds to the cash value. It differs from standard universal life in that the premiums are guaranteed to be level. This means that the premiums stay the same over the lifetime of the insured. If the guarantee premiums are paid, the policy is permanent life insurance and will pay benefits upon the death of the insured.

Indexed Universal Life

Indexed universal life can be guaranteed with level premiums or non-guaranteed like standard universal life. This type of universal life has an annual return and builds cash value over time. The return can be linked to the performance of a major stock index such as the S&P 500.

Variable Universal Life

Variable universal life is a non-guaranteed type of policy, which means the premiums may change. It has investment characteristics that allow the policyholder to make an investment allocation in certain mutual funds. The performance of this insurance is dependent on the underlying performance of the mutual funds owned through the policy.

To learn more and get a life insurance quote contact your agent at Castillo & Associates Insurance in Tucson, AZ by contacting us today.

3 reason why you need life insurance

Life insurance comes with many benefits that some mistakenly believe are only attainable when a person dies. There are ways, however, for you to cash in on your policy while still alive and thriving in Tuscon, AZ. Read on to learn about the three biggest reasons to invest in a life assurance plan. Call the experts at Castillo & Associates Insurance to get started with a quote!

1. Pay for final expenses

The most common reason to purchase a life indemnity policy is to pay for final expenses. Term life assurance is the most common option when you want to cover final arrangements. It is fairly easy for you to designate beneficiaries so that you ensure the right family member has access to the money that is meant to pay for your final expenses.

In many ways, life insurance removes the confusion that may come from loved ones sorting out the details of your bank account. It is pretty clear that money coming from a life indemnity policy is for funeral arrangements and not just another source of income.

2. Pay off debt

Life insurance may not be another source of income in its entirety. A whole assurance policy can, however, help you pay off debt while you are living and after you pass on. Of course, family members can use what is left from a life insurance policy to close loose ends in terms of debt. A whole life assurance plan gives you the added option of cashing in on the interest that accrues so that you can reduce the amount that you owe while still alive.

Claiming interest on a whole life insurance plan is especially helpful when emergencies arise. You can use the funds to cover unexpected expenses so that you do not have to go into even deeper debt by taking out a loan to pay for things.

3. Replace a spouse’s income

There are times when the unexpected has lasting effects. Such is the case when an illness or injury prevents your spouse from working. A whole life insurance policy can make up for the loss of income so that you do not have re-arrange everything until your spouse is back on his feet.

There are many benefits to purchasing a life insurance plan in Tuscon, AZ. Let the experts at Castillo & Associates Insurance tell you more!

Why Millennials Need Life Insurance

Millennials have a unique set of needs in terms of insurance. Although health insurance is vital at any age, it’s becoming more apparent that life insurance is beneficial to have at any age as well, even if you’re a millennial. You’ll find purchasing a policy through Castillo & Associates Insurance, serving Tucson, AZ and the surrounding area, will give you a peace of mind.  

1. Student Loans 
The student loan debt that you’ve accumulated doesn’t just go away after you pass if somebody else co-signed for your loans. If your parents signed for a loan for you, they’ll have to pay the balance of your loan. You could leave your family financially responsible for a debt they didn’t accrue. Although you hope when you’re that young there isn’t a chance you’re going to pass, but you never know. Accidents happen behind the wheel, in a plane or anywhere really. You could even develop an unexpected illness. By having insurance, you’ll be prepared for whatever happens.   

2. Preparing for Children 
Millennials are at the age where they’re either having children or at least starting to family plan. Once a child is there, it might be too late to open a policy if something should happen during delivery. In some cases, you’ll find yourself procrastinating on opening a policy because it’s just too expensive, and there’s so much else your family needs besides a life insurance policy. If you want your children to have money to maintain the household and for their care, you’ll need to have life insurance for whoever is responsible for them after your passing.  

3. More Affordable when You’re Young 
As you age, the price of life insurance increases. The earlier you purchase insurance, the cheaper it is because insurance companies realize your health declines as you age, and you’re more at risk for certain potentially life-threatening health conditions as you age. Therefore, if you purchase life insurance early, you’ll be able to lock in that cheap rate before the price increases over time.  

Contact Castillo & Associates Insurance, serving Tucson, AZ and the surrounding region, today for a quote by calling 520-323-0220. 

4 Benefits of Whole Life Insurance

When buying life insurance, there are several things to consider when choosing a policy. With so many options available, it can be confusing and overwhelming trying to choose the best insurance plan for you. However, there are several benefits whole life plans have over other life insurance plans. The following benefits of whole life insurance may help you decide why this may be the right policy for you.

Fixed Premiums
As a whole-life insurance policy holder you are given a cost from the insurer that allows you to pay a level and predictable premium throughout the life of your policy. Having a fixed premium cost makes it easier for you to plan your budget.

Lifelong Insurance Coverage
Just as the name implies, a whole life insurance plan is designed to provide insurance coverage your whole life. Unlike term life insurance policies that only offer coverage for a specified period of time. As long as your premiums are up to date, a whole life insurance policy does not expire.

Cash Value
One of the best features of a whole life insurance policy is the cash value. This means that the insurance premiums that are paid towards your plan accumulate into a cash balance that you can borrow. If you do decide to discontinue your policy, you may still have value in the insurance plan. However, this depends on how much cash value has accumulated in the policy.

Tax Deferrals
An added benefit of whole life insurance policies is that the growth of interest in the policy is tax deferred. Also, if you have a basic participating policy, all dividends that you receive are considered a return of premium and they will not be taxed until your total dividends exceed your total policies.

A whole life insurance policy encourages savings and there are flexible money options. The accrual nature of a whole life insurance plan offers several flexible future options should you decide to discontinue paying premiums. Keep in mind that there may be a waiting period before you can borrow against a cash value.

Residents of Tucson, AZ who are interested in reviewing their current life insurance policy or are interested in exploring the various whole life insurance policy options available, should contact Castillo & Associates Insurance.