Fambuli is for

Life Insurance

Fambuli is for

Life Insurance

Learn About Life Insurance

Let's be honest here - we're all going to die eventually - so why are people so afraid to talk about life insurance? Maybe its because you got sold a crummy policy back in the day that left a bad taste in your mouth, or maybe you just don't see the point in leaving money behind after you die. We've heard all the reasons why people don't want to talk about it, but we've also heard all the reasons why people regret not having it.

There are several types of life insurance available today, and all the lingo and jargon can get confusing for the general public. So to make it easy for you, we've broken down some different ways you can use life insurance that actually make sense.

Term Life Insurance

This one is pretty straight forward. An insurance company insures your life for a set term, usually 10 to 30 years, at a set price. Once the term is up, you can renew at a higher price, or cancel the policy and walk away. Term insurance is usually pretty inexpensive because the insurance company is only covering you during the term, so you can get a lot of coverage for a relatively lower premium. People typically deploy term insurance when they are young and healthy, and have the most financial risk (like working and raising a family). Term insurance can also be used to cover temporary situations too, like loans, business arrangements, or court orders.

Interesting Stuff

It's not all about death: Some term insurance policies can pay out while you're still alive. These are called living benefit policies. Just like a death benefit pays out when you die, living benefits pay out when you experience critical illnesses like cancer, heart attack, and stroke, but don't die.

You don't always need an exam: Back in the old days, if you wanted life insurance, you needed to have a medical exam. Today, it's possible to get a policy issued with no exam at all. How is this possible? Technology. The insurance companies pull what's called a medical history report and compare it to the answers you provide on the application. This report is kind of like a credit report, but for your health.

It's faster (and less expensive) than you think: Since insurance companies are relying more and more on digital underwriting, a lot of policies are getting issued within a day or two. And since the insurance company doesn't have to pay for a nurse to come to your house for an exam, they pass the savings along to you.

Below are some strategies that our clients use term insurance for

Mortgage Protection

Income Replacement

Child Support Orders

Designed to cover the balance of your home mortgage should you pass away or get critically ill. The insurance payout helps your family stay in the home, or provide time if they want to move.

What is your annual income? How many years do you want that to last if you die?

It's that simple. This strategy allows your family to keep paying the bills when you're no longer here. Income replacement is important for two income households, stay-at-home spouses/parents, and parents of special needs adult children.

No one wants to get divorced, but it happens everyday. When kids are involved, child support is also typically involved. A lot of courts will rule that the parent paying support must have life insurance in place until their children reach 18.

Whole Life Insurance

Unlike term insurance, whole life insurance doesn't end and covers you for your whole life. However, because of that, whole life insurance is also more expensive than term because the insurance company knows that since you're definitely going to die and they'll have to pay out.

Whole life is great to have when you're older, retired, and your kids are all grown up. Why? Because you don't need as much whole life as you did term when you were younger. Essentially, whole life becomes a way for you to pay off your funeral and final expenses, but that's not all. Whole life can be used for estate planning and leaving a legacy as well. Depending on the insurance company and the type of whole life policy, it can even build cash value that you can access while you're still alive (but we'll get into that more later).

Interesting Stuff

It's not all about death: Some whole life insurance policies can pay out while you're still alive. These are called living benefit policies. Just like a death benefit pays out when you die, living benefits pay out when you experience critical illnesses like cancer, heart attack, and stroke, but don't die.

You don't always need an exam: Back in the old days, if you wanted life insurance, you needed to have a medical exam. Today, the majority of policies get issued with no exam at all. How is this possible? Technology. The insurance companies pull what's called a medical history report and compare it to the answers you provide on the application. This report is kind of like a credit report, but for your health.

It's faster (and less expensive) than you think: Since insurance companies are relying more and more on digital underwriting, a lot of policies are getting issued within a day or two. And since the insurance company doesn't have to pay for a nurse to come to your house for an exam, they pass the savings along to you.

Below are some strategies that our clients use whole life insurance for

Equity Protection

Final Expenses

Estate Planning

Designed to cover your monthly mortgage payment should you pass away or get critically ill. The insurance payout helps your family stay in the home so they don't have to rush while they figure out next steps

Do you want to get buried or cremated? Or maybe you want to be put into one of those tree pods or get turned into a diamond.

Regardless of your final wishes, whole life can help pay for it.

Sometimes having a written estate plan just isn't enough because it needs money to work. Whole life insurance is a great companion because it can safely help fund your plan or trust without getting locked up in probate.

Universal Life

Flexible premiums, increasing benefits, and cash value are all integral parts of a universal life policy. When set up properly, they can be used for just about strategy that term or whole life can be, and sometimes at a lower cost. But be warned, universal life policies can be complicated.

At its core, a universal life policy has two buckets - a premium bucket and a cash value bucket. The premium (what you pay) of a universal life policy then gets split between these two buckets. First, the insurance company uses the premium to pay for the cost of insurance, and amount that increases gradually each year. Second, whatever is left over goes towards the policy's cash value. But this is where things can get tricky. Since the cost of insurance increases every year, if the premium payment is not enough to cover it, then the cost of insurance is deducted from the policy's cash value, which can eventually cause the policy to lapse. When set up properly, this can be a great strategy for folks not concerned about accumulating cash value and would rather have lower premiums.

On the flip side, some insurance companies offer indexed universal life policies (IUL). What happens here, is the cash value bucket is tied to an index like the S&P 500. The better the index does, the more your cash value can grow. When set up properly, an IUL can be financial instrument.

Despite what gurus on Tik-Tok say, UL and IUL policies are not ideal for everyone. You should work with a competent licensed agent to show you all of your options so that you can make an informed decision.

Interesting Stuff

It's not all about death: Most universal life insurance policies can pay out while you're still alive. These are called living benefit policies. Just like a death benefit pays out when you die, living benefits pay out when you experience critical illnesses like cancer, heart attack, and stroke, but don't die.

You don't always need an exam: Back in the old days, if you wanted life insurance, you needed to have a medical exam. Today, the majority of policies get issued with no exam at all. How is this possible? Technology. The insurance companies pull what's called a medical history report and compare it to the answers you provide on the application. This report is kind of like a credit report, but for your health.

It's faster (and less expensive) than you think: Since insurance companies are relying more and more on digital underwriting, a lot of policies are getting issued within a day or two. And since the insurance company doesn't have to pay for a nurse to come to your house for an exam, they pass the savings along to you.

Below are some strategies that our clients use UL and IUL insurance for

Seasonal Income

Income Replacement

Flexibility

Flexible premiums allow policy holders to adjust the premium payment to better suit a seasonal income lifestyle.

When set up properly, you can have income replacement in two ways. The first is if you die, the death benefit pays out. The second is when you retire, the cash value can be used to help supplement income.

Universal life can be deployed just about anywhere that term or whole life can, so some people choose to use it for covering their burial while others use it to pay off their mortgage. The possibilities are endless.

Learn About Life Insurance

Let's be honest here - we're all going to die eventually - so why are people so afraid to talk about life insurance? Maybe its because you got sold a crummy policy back in the day that left a bad taste in your mouth, or maybe you just don't see the point in leaving money behind after you die. We've heard all the reasons why people don't want to talk about it, but we've also heard all the reasons why people regret not having it.

There are several types of life insurance available today, and all the lingo and jargon can get confusing for the general public. So to make it easy for you, we've broken down some different ways you can use life insurance that actually make sense.

Term Life Insurance

This one is pretty straight forward. An insurance company insures your life for a set term, usually 10 to 30 years, at a set price. Once the term is up, you can renew at a higher price, or cancel the policy and walk away. Term insurance is usually pretty inexpensive because the insurance company is only covering you during the term, so you can get a lot of coverage for a relatively lower premium. People typically deploy term insurance when they are young and healthy, and have the most financial risk (like working and raising a family). Term insurance can also be used to cover temporary situations too, like loans, business arrangements, or court orders.

Interesting Stuff

It's not all about death

Some term insurance policies can pay out while you're still alive. These are called living benefit policies. Just like a death benefit pays out when you die, living benefits pay out when you experience critical illnesses like cancer, heart attack, and stroke, but don't die.

You don't always need an exam

Back in the old days, if you wanted life insurance, you needed to have a medical exam. Today, it's possible to get a policy issued with no exam at all. How is this possible? Technology. The insurance companies pull what's called a medical history report and compare it to the answers you provide on the application. This report is kind of like a credit report, but for your health.

It's faster (and less expensive) than you think

Since insurance companies are relying more and more on digital underwriting, a lot of policies are getting issued within a day or two. And since the insurance company doesn't have to pay for a nurse to come to your house for an exam, they pass the savings along to you.

Below are some strategies that our clients use term insurance for

Mortgage Protection

Designed to cover the balance of your home mortgage should you pass away or get critically ill. The insurance payout helps your family stay in the home, or provide time if they want to move.

Income Replacement

What is your annual income? How many years do you want that to last if you die?

It's that simple. This strategy allows your family to keep paying the bills when you're no longer here. Income replacement is important for two income households, stay-at-home spouses/parents, and parents of special needs adult children.

Child Support Orders

No one wants to get divorced, but it happens everyday. When kids are involved, child support is also typically involved. A lot of courts will rule that the parent paying support must have life insurance in place until their children reach 18.

Whole Life Insurance

Unlike term insurance, whole life insurance doesn't end and covers you for your whole life. However, because of that, whole life insurance is also more expensive than term because the insurance company knows that since you're definitely going to die and they'll have to pay out.

Whole life is great to have when you're older, retired, and your kids are all grown up. Why? Because you don't need as much whole life as you did term when you were younger. Essentially, whole life becomes a way for you to pay off your funeral and final expenses, but that's not all. Whole life can be used for estate planning and leaving a legacy as well. Depending on the insurance company and the type of whole life policy, it can even build cash value that you can access while you're still alive (but we'll get into that more later).

Interesting Stuff

It's not all about death

Some whole life insurance policies can pay out while you're still alive. These are called living benefit policies. Just like a death benefit pays out when you die, living benefits pay out when you experience critical illnesses like cancer, heart attack, and stroke, but don't die.

You don't always need an exam

Back in the old days, if you wanted life insurance, you needed to have a medical exam. Today, the majority of policies get issued with no exam at all. How is this possible? Technology. The insurance companies pull what's called a medical history report and compare it to the answers you provide on the application. This report is kind of like a credit report, but for your health.

It's faster (and less expensive) than you think

Since insurance companies are relying more and more on digital underwriting, a lot of policies are getting issued within a day or two. And since the insurance company doesn't have to pay for a nurse to come to your house for an exam, they pass the savings along to you.

Below are some strategies that our clients use whole life insurance for

Equity Protection

Designed to cover your monthly mortgage payment should you pass away or get critically ill. The insurance payout helps your family stay in the home so they don't have to rush while they figure out next steps

Final Expenses

Do you want to get buried or cremated? Or maybe you want to be put into one of those tree pods or get turned into a diamond.

Regardless of your final wishes, whole life can help pay for it.

Estate Planning

Sometimes having a written estate plan just isn't enough because it needs money to work. Whole life insurance is a great companion because it can safely help fund your plan or trust without getting locked up in probate.

Universal Life

Flexible premiums, increasing benefits, and cash value are all integral parts of a universal life policy. When set up properly, they can be used for just about strategy that term or whole life can be, and sometimes at a lower cost. But be warned, universal life policies can be complicated.

At its core, a universal life policy has two buckets - a premium bucket and a cash value bucket. The premium (what you pay) of a universal life policy then gets split between these two buckets. First, the insurance company uses the premium to pay for the cost of insurance, and amount that increases gradually each year. Second, whatever is left over goes towards the policy's cash value. But this is where things can get tricky. Since the cost of insurance increases every year, if the premium payment is not enough to cover it, then the cost of insurance is deducted from the policy's cash value, which can eventually cause the policy to lapse. When set up properly, this can be a great strategy for folks not concerned about accumulating cash value and would rather have lower premiums.

On the flip side, some insurance companies offer indexed universal life policies (IUL). What happens here, is the cash value bucket is tied to an index like the S&P 500. The better the index does, the more your cash value can grow. When set up properly, an IUL can be financial instrument.

Despite what gurus on Tik-Tok say, UL and IUL policies are not ideal for everyone. You should work with a competent licensed agent to show you all of your options so that you can make an informed decision.

Interesting Stuff

It's not all about death

Most universal life insurance policies can pay out while you're still alive. These are called living benefit policies. Just like a death benefit pays out when you die, living benefits pay out when you experience critical illnesses like cancer, heart attack, and stroke, but don't die.

You don't always need an exam

Back in the old days, if you wanted life insurance, you needed to have a medical exam. Today, the majority of policies get issued with no exam at all. How is this possible? Technology. The insurance companies pull what's called a medical history report and compare it to the answers you provide on the application. This report is kind of like a credit report, but for your health.

It's faster (and less expensive) than you think

Since insurance companies are relying more and more on digital underwriting, a lot of policies are getting issued within a day or two. And since the insurance company doesn't have to pay for a nurse to come to your house for an exam, they pass the savings along to you.

Below are some strategies that our clients use UL and IUL insurance for

Seasonal Income

Flexible premiums allow policy holders to adjust the premium payment to better suit a seasonal income lifestyle.

Income Replacement

When set up properly, you can have income replacement in two ways. The first is if you die, the death benefit pays out. The second is when you retire, the cash value can be used to help supplement income.

Flexibility

Universal life can be deployed just about anywhere that term or whole life can, so some people choose to use it for covering their burial while others use it to pay off their mortgage. The possibilities are endless.

Explore How Fambuli Protects Your Family

Whether you're single, married with kids, divorced, or in a situationship, we partner with several major insurance companies to build customized solutions based on your needs and budget.

Life Insurance

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Retirement

Click a topic to learn more

Explore How Fambuli

Protects Your Family

Whether you're single, married with kids, divorced, or in a situationship, we partner with several major insurance companies to build customized solutions based on your needs and budget.