Protecting your loved ones is high on your list of priorities. Life insurance can help you develop a secure future for the people you care about most.
Think back to when you purchased your first car. Before you even stepped foot into the dealership, you knew why you needed a car and had an idea of what model would best suit your needs. It’s important to answer these same two questions before investing in life insurance.
Why do you need life insurance?
- To provide replacement income for your dependents.
- To pay for your final expenses
- To create an inheritance for your heirs.
- To pay your federal & state death taxes.
- To help you make larger charitable contributions.
- To help you create a source of savings.
What type of life insurance will be most beneficial for your situation?
Luckily, there aren’t as many types of life insurance as there are car models. A life insurance policy is considered either term or permanent (sometimes called universal or whole life).
Consider term life insurance if:
- You only need life insurance for a specific amount of time. For example, if your main concern is that your newborn daughter will have enough money to attend college, you might only need a 20-year policy.
- You don’t have a large budget but you still need life insurance. A term life insurance premium is usually lower since the insurance only pays if you die during the policy’s term.
Consider permanent life insurance if:
- You need life insurance for the entire length of your life.
- You want to use the policy to accumulate savings. The savings element on permanent life insurance can be used to pay your premium or for any other purpose you choose.
Generally speaking, life insurance premiums are lowest when you are young. On term policies, your premium may start lower but will increase with each renewal. Permanent policies usually have higher starting premiums, but that premium stays the same regardless of your age.
Contact us today for more information and a free rate quote.