American Family Agencies Insurance - Clearwater, FL

American Family Agencies Insurance
2260 Gulf To Bay Blvd
Clearwater, FL 33765
Phone:727-669-4777
Fax:727-669-8407

Life Insurance Coverage
It's not for those that die, it's for the ones that live. There are many different kinds of Life Insurance.

There are two major types of life insurance - Term and whole life. Whole life is sometimes called permanent life insurance, and it encompasses several subcategories, including traditional whole life, and universal life. In 2003, about 6.4 million individual life insurance policies bought were term and about 7.1 million were whole life.

-Universal Life
A flexible premium policy that combines protection against premature death with a type of savings vehicle, known as a cash value account, that typically earns a money market rate of interest. Death benefits can be changed during the life of the policy within limits, generally subject to a medical examination. Once funds accumulate in the cash value account, the premium can be paid at any time but the policy will lapse if there isn't enough money to cover annual mortality charges and administrative costs.

-Term Life
A form of life insurance that covers the insured person for a certain period of time, the "term" that is specified in the policy. It pays a benefit to a designated beneficiary only when the insured dies within that specified period which can be one, five, 10 or even 20 years. Term life policies are renewable but premiums increase with age.

-Key Person Life
Insurance on the life or health of a key individual whose services are essential to the continuing success of a business and whose death or disability could cause the firm a substantial financial loss.

-Buy / Sell Life
An agreement among part-owners of a business which says that under stated conditions, i.e., disability or death, the person withdrawing from the business or his heirs are legally obligated to sell their interest to the remaining part-owners, and the remaining part-owners are legally obligated to buy at a price fixed in the agreement.

-First-to-Die Life
As the name implies, "first-to-die" or "joint-life" insurance policies pay out the face amount when the first named insured dies. This reduces the cost of paying premiums on two separate policies, when the insurance proceeds are most needed when only the first insured dies.

-Split Dollar Life
This agreement splits the premiums, cash values and death benefits of a life insurance policy between two parties. The policy holder contributes a gift (payment) each year to increase the economic benefit. It is important to have as it free's up dollars otherwise paid currently in gift taxes for use in other more productive ways (ie. investments).