Life insurance is never an attractive topic to face. Life is meant to be savored, as every moment is fleeting. While you may be enjoying your life it’s important to have a sit down with an experienced specialist and talk about the inevitable death factor in our lives. Life insurance is not an investment for you rather for your loved ones. Think of it as an account that can take the burden off of your loved ones after you’ve gone. It can help pay for funeral expenses, outstanding debt and if planned correctly it can help with everyday living expenses.
There are two favored kinds of life insurance policies, there’s Term Life insurance and Whole Life insurance. Both offer valuable protection, but each has different features. Your needs will evolve and your insurance should change with those needs. Deciding on the best product for your needs can be difficult. Hopefully, we can help.
The Value of Term Life Insurance
Term life insurance is designed to help people obtain the protection needed when they can’t afford to purchase permanent life insurance. It’s also useful when coverage is needed for a specific period of time. Such as when your family is growing. The insurer is protected, and the beneficiary receives a fixed amount of money if the insurer dies within the insured period. The period of coverage can vary it could be up to a certain age of the insurer, usually until age 60 or 70. Or, the period of coverage can be for a certain number of years, in example 10 or 20 years.
Term Life Pay Outs – Pro’s And Con’s
Term life insurance will issue a lump sum upon the death of the insurer to the listed beneficiaries. PRO’s: As a whole, the insurance premiums for term life policies are considerably less than the ones payable for the whole life insurance policy. This coverage can also be an effective way to supplement permanent insurance during high-need years, such as when family and financial responsibilities are outpacing income. CON’s: Like its name suggests Term life policies have a coverage period that is limited. Keep that in mind when choosing the period of coverage. Usually, inexpensive initially, with the cost increasing at each renewal point.
The Value of Whole Life Insurance
Whole life insurance is designed to provide life insurance coverage in addition to other “living benefits” including guaranteed cash value accumulation as long as the premiums are paid, eligibility to earn dividends, and access to cash value via loans and partial surrenders. The insurer receives additional sums of money alongside the lump sum amount, which can be invested by the insurer. This policy’s period of coverage is for the entire life of the insurer or up to age 99.
Whole Life Pay Outs – Pro’s And Con’s
This policy will upon the death of the insurer, will disperse either the lump sum of money or accumulated savings. PRO’s: If the policy is being surrendered the insurer will receive the amount accumulated so far, minus any fees. Cash can be withdrawn before the death of the insurer, as well as loans can be taken out from the cash amounts. Premiums are guaranteed to stay level for the life of the policy. CON’s: Given that whole life policies are meant to last a lifetime, cash value may not be given in the early years of the policy.
Now, let’s do a self evaluation. Feeling confident? Still confused? That’s no problem at all, pick up the phone and call us. Our specialist are always ready to help you begin the process and answer questions along the way.
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