After completing the Series 65 exam, Darcy Bergen started providing financial consultation as president of Bergen Financial Group. A financial advisor, Darcy Bergen provides clients with advice on risk management, income planning, and life insurance.
According to a study by the Life Insurance Marketing Research Association, less than half of Americans have individual life insurance coverage, the lowest level in half a century. One of the main reasons for this is that most workers opt for employer-provided group policies rather than individual coverage. Even though the employer benefit can be convenient, it is far better to maintain an individual life insurance coverage. The more obvious reason is to safeguard from employment uncertainties. Considering the employment market has its ups and downs, it is better to have an individual cover that remains active in the case of employment termination. The other less obvious reasons are the flexibility and benefits of an individual coverage.
Individual life insurance policies can either be term or permanent. Term life insurance provides cover over a specified time period. The terms can go as long as 30 years. This policy gives policyholders several options. The payment schedules can be fixed or annually adjusted. Some plans have an option to extend the term or convert the coverage to permanent life insurance which provides a death benefit upon the death of the policyholder.
With the permanent cover, payments are typically higher but the premiums remain the same. Insurers set aside a portion of these payments in tax-deferred, cash value accounts which grow at guaranteed rates. Policyholders can make withdrawals or take loans from these accounts, tax-free.