Life and Disability
What is Life Insurance?
Life insurance is a versatile tool that can be used in a variety of ways to help you meet both personal and business planning needs. Choosing the appropriate type of life insurance depends on your resources and the length of time that the protection is needed. This timeframe can be influenced by personal and business factors, such as:
- Business loans
- Cash flow for growth
- Dependent children
- Personal debt
- Education expenses
- Retirements goals
Federated offers both term life insurance and universal life insurance.
What is term insurance and how does it work?
Term insurance is the simplest form of life insurance. Term life insurance provides protection for a limited period, or the term of the policy. The death benefit is paid if you, the insured, dies within that specific term period. If the insured survives the term, the policy ends and no benefits are paid. Federated offers both ten and twenty year level term policies.
Term insurance can be an affordable solution for meeting short-term protection needs and has the potential to be converted to permanent life insurance later.
What is universal life insurance and how does it work?
Universal life is a form of permanent life insurance that provides a long-term death benefit while providing flexibility in paying premiums. With the appropriate premium payments, it builds cash value over time, which can be used for future planned and unplanned expenses. Also, the cash value grows tax-deferred and can be accessible through loans and partial surrenders during your lifetime.
What is Disability Insurance?
Disability income insurance is a type of business insurance that provides income in the event that the policyholder is prevented from working and earning an income due to a disability.
Why do I need disability insurance?
Disability insurance is needed to replace a percentage of your income if your ability to work is suddenly interrupted by an injury or sickness. This income is intended to help pay day-to-day expenses and maintain a standard of living.
How does disability insurance work?
The payment of disability benefits is established from the specific terms of the contract, including what is considered a disability, how much will be paid, and when benefits will begin and end.
Learn How Federated Can Help You with Life and Disability Insurance
Together, life insurance and disability insurance, can create a safety net for you. Federated’s wide-ranging policies and services address specific needs from business debt protection, owner and employee benefits, disability income protection, and beyond. We have a network of independent attorneys who can assist you with your estate planning and business succession needs.
To learn more about our life and disability insurance offerings and services, reach out to us or call 1-800-533-0472.