Life insurance is for those you LOVE!
Life insurance isn’t typically light and fun dinner time conversation. In fact, most people don’t want to talk about it all. But we believe that preparing for the future and everything that may come with it doesn’t have to be heavy or depressing. Instead, think about it as an act of love. Yes, love. Because life insurance isn’t about you. It’s about caring for your loved ones and providing them the gift of removing financial burdens in the event you’re unable to. It’s both a timely and worthwhile topic so let’s dive in, shall we?
Let’s begin by discussing a main distinction between the types of policies — Term life Insurance versus Whole Life (also known as Permanent) Insurance. Both are useful policies in their own right, but your family’s needs will dictate which policy is the most appropriate.
1. Term Life Insurance
It’s just as it sounds, it’s life insurance that provides protection for a specific period of time. It insures against the unthinkable – a premature death. This type of policy only pays your beneficiaries if your death occurs within the period of time you’re covered. Otherwise, it expires with no value.
Typically, these periods of time, or “terms”, are offered in increments of 10, 20 or 30 years. When choosing a term you’ll want to consider several factors like the number of years left on your mortgage and how many years before your children become independent.
2. Whole Life Insurance
Whole Life Insurance – Like you would expect from the name, whole life insurance can provide life-long coverage. This type of policy, similar to term insurance, will pay your beneficiaries if something should happen, but it typically includes an investment component that can be used by the owner throughout the policy’s lifetime.
Understandably, because it offers lifelong coverage as well as the potential for cash value benefits, whole life insurance is typically a more expensive option but one used by those who have some expendable cash and want coverage for their loved ones.
Typically, these periods of time, or “terms”, are offered in increments of 10, 20 or 30 years. When choosing a term you’ll want to consider several factors like the number of years left on your mortgage and how many years before your children become independent.
Regardless of the type of insurance you choose, both will cover bills your family may face immediately after your passing. Things such as burial costs, outstanding bills, mortgage payments, etc. All those worrisome costs that can keep them from focusing on getting through a tough time.
By having a plan in place and replacing your income after you’re gone, it can mean the difference between having to move out of the family home, getting a second job or being able to afford child care and paying for college tuition. The stakes are high when it comes to the love you have your family. Schedule a call with your insurance agent today and show your family how much their welfare means to you this Valentine’s Day season.
