What to Consider When Purchasing Life Insurance

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Life Insurance
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George Argyros Jr. heads the Elite Financial Group, LLC, of Newport Beach, California, a private holding company and financial services firm. George Argyros Jr. and his team have provided life insurance policies to clients since 2003.

To increase your likelihood of receiving good service and a product that suits your needs, make sure you evaluate the financial strength of the insurance company selling the policy. Find out how long they have done business and the background of its sales force. Ideally, an insurance professional you want to work with is a chartered life underwriter, chartered financial consultant, or certified financial planner. In addition, search online for business ratings through sites such as Weiss Ratings and AM Best Co.

Once you select an insurance company and representative that seem right for you, work with them to determine how they can meet your needs. Every company uses a different formula to calculate insurance coverage, but you and your agent’s primary goal should be to create a policy that, upon your death, pays off all your debts and leaves your beneficiaries with enough money to help them maintain their current lifestyle and/or improve their financial position.

When your agent presents you with a policy option, make sure you ask if it is based on an estimate or on a thorough analysis of your financial situation. A policy worth purchasing is comprehensive, and your agent should be able to explain in detail how a plan was customized to meet your needs.

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Three Types of Life Insurance Policies

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Life Insurance
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After receiving both an undergraduate degree and a doctor of jurisprudence from Chapman University, George Argyros Jr. began a career in the finance and insurance industries. George Argyros Jr. is president and CEO of Elite Financial Group, LLC, a company that offers a variety of insurance products, including life insurance policies.

Life insurance policies provide a lump-sum payment to a pre-determined beneficiary in the event of the policy holder’s death. This is also known as a death benefit. Life insurance policies come in a variety of formats, but three of the most common types are whole, universal, and term.

Both universal and whole life insurance offer lifetime coverage. Whole life insurance premiums are typically fixed and whole life has a cash value, so it provides a tax-deferred savings opportunity for the policy holder. Universal life insurance premiums are variable, depending on the needs of the policy holder and the amount of coverage desired at the time. Universal also offers a tax-deferred savings opportunity for the policy holder.

Term life insurance policies provide protection for the policy holder for a guaranteed premium and a specified amount of time. If the policy holder dies during this time, the beneficiary receives a lump-sum payment. If not, the policy can be renewed, but the premium generally increases.

Understanding Life Insurance Products

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Life Insurance Types
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George Argyros Jr. is the chief executive officer of Elite Financial Group, LLC; Leveraged Life, Inc.; and the Argyros Group. Under the leadership of George Argyros Jr., these companies provide consumer financial services and products such as life insurance.

Types of life insurance products include term life, whole life, and guarantee universal, and index universal. Each product provides coverage for loss of life, but the terms and conditions differ. These differences may make one type of insurance preferable over another to a person seeking coverage.

The first difference to note is duration. Term life insurance protects covered parties for a specified period of time, such as 10 years. Individuals must reapply for coverage at the end of the term, at which time the terms, pricing, and eligibility requirements could change. On the other hand, barring exceptions such as lapses due to non-payment, whole life insurance protects covered parties for life. For this reason, whole life is sometimes referred to as permanent life insurance.

Something else to consider is whether a policy builds cash value over time. Some policies, such as index universal life insurance, build value over time against which a policyholder can borrow. Products such as guarantee universal life insurance or term life insurance may not build this value.

There are other aspects of policies to consider, and product terms will vary from provider to provider. However, features like duration and potential cash value may help individuals determine what type of life insurance policy best fits their needs.

Common Types of Life Insurance

The founder and chief executive officer of Elite Financial Group, LLC, George Argyros Jr. has more than 10 years of experience in the fields of insurance and financial investment. George Argyros Jr. also leads a number of other companies and investment firms, including Leveraged Life, Inc., which provides life insurance premium finance programs.

Consumers can typically purchase several different types of life insurance. The main variations in these policies include costs, durations, and structures, while death benefit amounts may be the same.

– Whole life insurance. Beginning from the payment of your first, fixed premium, this type of life insurance is active your whole lifetime. One of the most popular types of life insurance, whole life pays a fixed amount to your stated beneficiary in the event of your death. Each year, the policy builds in cash value that can be borrowed against tax-free.

– Term life insurance. Often the least expensive life insurance option, term life has a variable premium rate that increases as you age or as the policy matures, depending on the length of the term, which is usually no longer than 10 to 30 years. Although the policy pays its stated value if the insured party dies within the term period, it pays nothing beyond the term period.

– Universal life insurance. A more flexible but higher-risk type of life insurance policy, universal life allows individuals to determine both the premium amount and the death benefit payment. Because the premiums are based in part on long-term interest rates, they may rise and fall throughout your life. The downside of the flexibility is that if premiums fall too low, they may not cover the cost of the death benefit and the policy would lapse. If that happens, all premiums paid and any potential death benefit disappears.

An Overview of Two Types of Life Insurance

An accomplished senior executive with many years of experience in the life insurance sector, George Argyros, Jr. currently serves as the founder and chief executive officer of Elite Financial Group, LLC. In this capacity, George Argyros, Jr. oversees all financial activities at the company and delivers a full range of life insurance products. There are two main forms of life insurance: protection policies, such as term life, and investment policies, such as whole life.

At the most basic level, term life insurance refers to a policy that expires at the end of a pre-determined coverage period, such as age 65. The coverage period is referred to as the term. Thus, if the policyholder dies while the life insurance policy is active (that is, before the end of the term), then the policy pays out beneficiaries in full. If the policy is allowed to expire, however, then the contract is ended and no payment will be made.

Alternatively, whole life insurance policies usually last until the death of the policyholder or age 100. In addition to the lump sum death benefit, whole or “permanent” life insurance has an investment component. This allows individuals to accumulate savings or take out loans against the cash value of the policy, a feature not offered by term life insurance policies.