Life Insurance: First Citizens' Worth And Drawbacks

Life insurance is an important policy to have, with 85% of Americans believing it is a necessary part of a financial plan. However, there is a disparity between belief and execution, with only 54% of adults having some type of life insurance and 40% having adequate coverage. First Citizens Life Insurance offers a range of life insurance products that can provide financial protection for your loved ones in the event of your death. Their policies include term life insurance, which is set for a specified time period, and permanent life insurance, which offers lifelong protection. First Citizens Life Insurance also offers living benefits and investment opportunities that can be enjoyed during the insured's lifetime. When considering life insurance, it is important to evaluate your family life, financial situation, and goals to find the policy that best suits your needs.

First Citizens Life Insurance: Personal income replacement

Life insurance is a crucial component of a comprehensive financial plan, offering peace of mind and security for you and your loved ones. First Citizens Life Insurance provides a range of options to meet your personal income replacement needs. Here's how First Citizens Life Insurance can help protect your income:

Income Replacement for Your Loved Ones:

First Citizens Life Insurance provides a financial safety net for your family in the event of your passing. It offers a lump-sum payment, known as a death benefit, to your beneficiaries, helping them maintain their standard of living. This can include covering essential expenses such as mortgage payments, rent, and utilities.

Customizable Coverage:

First Citizens offers flexible life insurance plans tailored to your specific goals and circumstances. You can choose between term life insurance, which provides coverage for a specified period, and permanent or whole life insurance, which offers lifetime coverage. Additionally, you can customize your protection based on your budget, the length of coverage needed, and the specific financial needs of your dependents.

Living Benefits:

First Citizens Life Insurance isn't just for your beneficiaries after your passing. It also offers living benefits that can provide financial support in the case of chronic or terminal illness. This can be especially valuable as about 40% of Americans have multiple chronic conditions, according to the National Association of Chronic Disease Directors.

Disability Income Insurance:

In addition to life insurance, First Citizens offers disability income insurance, which provides income replacement if you become disabled and unable to work. This type of insurance ensures that you can continue to cover your living expenses and maintain your standard of living during difficult times.

Comprehensive Financial Planning:

First Citizens takes a comprehensive approach to financial planning, offering a range of insurance products and services to meet your needs. They can help you review your existing policies, make adjustments, and fill any gaps in your coverage. This includes property, liability, umbrella, cyber, and various specialized types of insurance.

Peace of Mind:

Ultimately, First Citizens Life Insurance provides peace of mind, knowing that your loved ones will be financially secure if something happens to you. It ensures that your family can maintain their quality of life and helps protect your financial stability.

To summarize, First Citizens Life Insurance offers a range of options to meet your personal income replacement needs, providing financial protection for your loved ones and peace of mind for you. With customizable coverage, living benefits, and disability income insurance, First Citizens helps you secure your financial future and that of your family.

Whole life insurance: What's the difference between whole, universal and variable?

Whole Life Insurance: What's the Difference Between Whole, Universal, and Variable?

Whole life insurance, universal life insurance, and variable life insurance are all types of permanent life insurance, which means they provide coverage for the entirety of the policyholder's life. Permanent life insurance policies differ from term life insurance, which provides coverage for a specified period, such as 10 or 20 years.

Whole Life Insurance

Whole life insurance offers fixed and guaranteed premiums and a death benefit that will never decrease as long as premiums are paid. This reliability is often the most important factor for individuals choosing this type of insurance. Whole life insurance also offers the opportunity for dividends to increase the amount of coverage over time. The cash value of the policy grows tax-deferred, and this asset can be used for unexpected medical costs, additional income in retirement, or even a grandchild's college tuition. Whole life insurance is ideal for someone who wants to "set it and forget it," knowing their loved ones will be protected when they pass away.

Universal Life Insurance

Universal life insurance, also known as adjustable life insurance, provides more flexibility than whole life insurance. Policyholders can adjust their coverage and premiums (within limits) as their lives and financial circumstances change. Universal life insurance offers a variable death benefit and premiums, meaning policyholders can pay more or less each year, which will cause the cash value and death benefit to fluctuate. This flexibility comes with a degree of risk, as the policy can become underfunded and lapse if premiums are not met. Additionally, the cost of keeping the policy can increase significantly as the policyholder ages.

Variable Life Insurance

Variable life insurance allows a portion of the premium to be allocated to the insurance company's investment fund, with the opportunity to select from a wide range of investment options. The benefit of this type of insurance is that it combines the benefits of a variable policy with a whole life policy. However, one of the key risks is the fluctuation in cash value and death benefits due to the performance of investments. Variable life insurance is best suited for someone comfortable with investment risks and a variable death benefit.

Term life insurance: Cost-effective and flexible?

Term life insurance is a cost-effective option for those seeking life insurance coverage. It is a temporary policy that provides beneficiaries with a death benefit payout if the policyholder passes away before the policy expires. Term life insurance policies typically range from 10 to 30 years and come with lower premiums than permanent policies. The best term life insurance companies offer low prices, easy application processes, flexible policy features, and good customer service.

The cost of term life insurance is based on several factors, including age, health, and life expectancy. The younger and healthier you are, the lower your premiums will be. Additionally, term life insurance rates vary depending on gender, with women typically paying less than men due to their longer life expectancy.

When considering term life insurance, it is important to evaluate your needs and budget. Term life insurance is ideal for those who want substantial coverage at a low cost. It is a good option for young, healthy individuals or families who want to ensure their loved ones are financially protected in the event of their death.

Compared to whole life insurance, term life insurance is more affordable and offers flexible coverage for a specified period. Whole life insurance provides coverage for an individual's entire life and often includes a savings or investment component, resulting in higher monthly premiums.

In conclusion, term life insurance is a cost-effective and flexible option for individuals and families seeking life insurance coverage. It offers low premiums, easy applications, and the ability to renew or convert policies. By considering one's age, health, budget, and coverage needs, individuals can make informed decisions about their life insurance choices.

Permanent life insurance: Is it worth the cost?

Permanent life insurance is a set of life insurance policies that provide coverage for your entire lifespan, as long as the premiums are paid. It is more expensive than term life insurance and offers lifelong coverage. It also has a cash value component that grows over time and can be used to pay premiums or take out a loan from the insurer.

Permanent life insurance is best if your beneficiaries will need the money from the policy even if you die decades from now. For example, if you have lifelong dependents, such as a child with a disability, or want to help your heirs pay hefty inheritance or estate taxes or even funeral costs, a permanent life insurance policy is a good option.

Permanent life insurance is not always the best option. It is much more expensive than term life insurance, and it is often more complex due to its cash value component. While your policy may build cash value over time, insurance can be an expensive way to save for retirement, given the premiums.

Many people will outgrow the need for life insurance as they save, pay off debts, and finish raising their children. Term life insurance can cover you for the years you need it, and then you can reassess your need for life insurance. Term life insurance is also a good option if you're on a tight budget and want to ensure there's money to pay for your children's education or pay down debt.

When deciding between permanent and term life insurance, it's important to consider your financial situation and needs. If you need lifetime coverage and have the means to pay for permanent coverage, it can be a great way to ensure your loved ones are financially protected. However, if you're looking for a more affordable option that covers you for a specific period, term life insurance may be a better choice.

In conclusion, permanent life insurance can be worth the cost if you require lifelong coverage and have significant financial obligations that are not time-sensitive. However, it is essential to weigh the pros and cons against your specific needs and consider alternative options, such as term life insurance, to make an informed decision.

First Citizens Life Insurance: What are the benefits?

First Citizens Life Insurance offers a range of benefits to its customers. Here are some key advantages of their life insurance policies:

Financial Protection for Loved Ones:

First Citizens Life Insurance provides financial security to your loved ones in the event of your death. It offers a lump-sum payment, also known as a death benefit, to your beneficiaries, helping them cover expenses and maintain their quality of life. This includes covering funeral expenses, providing for educational costs, and supporting survivors' financial needs.

Living Benefits:

In addition to death benefits, First Citizens Life Insurance offers living benefits that can be enjoyed during the policyholder's lifetime. These benefits can include coverage for chronic or terminal illnesses, providing financial support if the policyholder faces such health issues.

Customizable Coverage:

First Citizens recognizes that everyone's needs are unique. They offer flexible plans and customizable protection packages tailored to your specific goals and circumstances. Whether you're single, married, or starting a family, they can help you choose the right type and amount of coverage.

Term and Permanent Options:

First Citizens offers both term and permanent life insurance options. Term life insurance provides coverage for a specified period, often 10 to 30 years, and is ideal for covering temporary expenses like mortgages or education. Permanent life insurance, including whole life insurance, offers lifelong coverage and accumulates cash value over time, which can be used for unforeseen expenses or retirement income.

Conversion Options:

Some term life insurance policies offered by First Citizens are convertible, meaning they can be converted into whole life insurance policies later on, ensuring continued coverage even if your health deteriorates.

Investment Opportunities:

Permanent life insurance policies, such as whole life insurance, include a savings or investment component. This allows your premiums to accumulate and grow over time, offering the option to cash in your policy or borrow against it to supplement your retirement income or cover unexpected costs.

Peace of Mind:

Life insurance provides peace of mind, knowing that your loved ones will be financially secure if something happens to you. It's a foundational component of your financial plan, ensuring stability and protection for your family's future.

Business Owner Benefits:

For business owners, First Citizens Life Insurance can be leveraged to fund transition plans, ensuring a smooth transfer of ownership shares. It can also help with wealth transfer, providing a simpler way to equalize assets among beneficiaries in complex blended family situations.

Long-Term Care Coverage:

First Citizens Life Insurance can include long-term care coverage, which is essential as 70% of people who turn 65 will develop extended care needs, according to the US Department of Health and Human Services. This type of coverage can help coordinate and offset the cost of extended care, reducing the financial and emotional burden on your family.

In conclusion, First Citizens Life Insurance offers a comprehensive range of benefits designed to provide financial security and peace of mind for you and your loved ones. Their customizable plans cater to diverse needs, offering both term and permanent coverage options, living benefits, and investment opportunities. By choosing First Citizens Life Insurance, you can rest assured that your family will be protected and provided for, no matter what the future holds.

Frequently asked questions