Erhardt Life Insurance

Frequently Asked Questions

Whole Life:

Whole life insurance is a type of permanent life insurance that provides a guaranteed death benefit for your beneficiaries for your entire life, as long as you pay the premiums. It also builds cash value over time, which grows tax-deferred and can be accessed by the policyholder through loans or withdrawals. This lifelong coverage and cash value accumulation make whole life insurance more expensive than term life, which only covers a specific period.

Term Life:

Term life insurance provides temporary coverage for a specific period such as 10 to 30 years, and pays a death benefit to beneficiaries if the insured dies during the policy's term. It is the simplest and most cost effective form of life insurance, with fixed premiums and no cash value component. Coverage is ideal for replacing income or covering debts like a mortgage during temporary financial obligations, ending when the term expires.

Universal Life:

Universal life insurance is a type of flexible, permanent life insurance that offers lifetime coverage, builds a cash value over time, and allows the policyholder to adjust the premium payments and death benefits within certain limits. Unlike whole life insurance with fixed payments, universal life offers flexibility to adapt to life changing financial needs and provides access to the accumulated cash value through loans or withdrawal's. However, this flexibility comes with risks, as the cash value growth is not guaranteed and underpayments can lead to policy lapse if not enough cash value exists to cover costs.

Annuities:

An annuity is a retirement product that may provide protected, reliable income when you need it. An annuity can help bridge the gap between the savings you've accumulated over time and traditional sources of retirement income like Social Security. Plus, if you don't need the income immediately, you can let it potentially grow tax deferred. That's why an annuity can be a powerful addition to your financial plan.