Life insurance not only protects your family by paying outstanding debts and replacing the income of a deceased wage earner, it can also be used for estate planning or charitable contributions.
Life insurance is premium based on 2 things: Your age at the time of purchase and your health. The younger you are – the less expensive it is.
Employer provided life insurance benefits are great, but we do not recommend relying on those alone. If you lose your job, many times you can NOT take your life insurance benefits with you. If you are still young and insurable, that’s great – but what if you are not insurable due to a current medical condition?
It is for this reason that we always strongly recommend that you purchase your own life insurance so that you have control of it despite job changes.
Types of Life Insurance
TERM: Term insurance is the simplest form of life insurance available. It provides financial protection for a specific period of time, usually 10, 20, or 30 years. These policies are very inexpensive and we recommend you always chose the longest ‘term’ to lock in your rates. These policies only provide a death benefit, there are no cash values that accumulate and no policy loans are available in them.
PERMANENT: Permanent insurance such as universal life, whole life and variable universal life provide long-term financial protection. These policies include the death benefit in addition to cash savings and policy loan availability. Because of the savings element of these policies, they will be more costly than term insurance.
For help in determining what type of life insurance is best for your situation, or for assistance in determining how much life insurance is enough for you, simply give our agency a call. We would be honored to be your insurance agency for life.