Death is always with us; our life is very fragile, and there are no guarantees. So ask yourself what’s the worst thing that could happen to you. Your answer is probably “to die too soon” and should also include “without adequate life insurance for my family.” Many people express a general dislike of insurance, and many times it has to do with the hassle of claims. Here’s a thought: if you’re tired of problems with insurance claims, buy life insurance. There’s only one claim per policy.
Life needs a little fun, and poking fun at a very serious event may not be in good taste, but it might get your attention. We all know the importance of life insurance, and the most common questions I receive are: What kind of life insurance should I get? How much life insurance is enough? These are very good questions, and to make sure your needs are met, you might need a life insurance review.
Whole life insurance is permanent and generally provides coverage throughout a person’s life. It’s designed to allow a policy owner to accumulate a cash value, which can be borrowed while the policy is still active or received when the policy is surrendered. Life insurance with a cash value feature provides security. Most whole life policies include a level death benefit, a level premium payment, and accumulation of tax-deferred cash value over time.
Term life insurance is an excellent option for people who can’t afford permanent life insurance or who need coverage for a limited period of time. It also can offer temporary protection for long-term needs when you can’t afford a permanent life insurance plan at the current time. Conversion to a permanent plan at a later date may be an option.
When you compare whole life with term insurance, some differences stand out: length of coverage, premium, and the cash value options. Initial premiums on term insurance typically are less expensive. While the premium for whole life never changes, you can purchase term insurance for terms of level premium payments. The most popular term policies today can set your premium for 10, 20, or even 30 years.
There’s a lot to know before you make a decision on what to buy and how much to buy. The normal tendency for people is to do nothing, but if you love your family, doing nothing isn’t an option. TPW