Life

 

For many, life insurance can feel like just another expense - until you really need it. But even if you have a budget that doesn't budge, term life insurance can be a cost-effective solution to get the insurance coverage you need now at an affordable price. 

 

Begin by asking yourself whether your family would have enough to live on, pay off debts (including a mortgage and funeral expenses), and pay for costs to raise and educate your children if you were gone. Remember that when you die, your paycheck stops, leaving a significant difference between your expenses and assets. Fortunately, this is where term life insurance can help fill the gap. Try using the online life insurance calculator to get an estimate of the amount of term insurance you might need, or consult with us for help. Buy the longest term you can afford to ensure that you have coverage for as long as you might need it i.e., 10-30 years.  Also, consider adding policy riders that will allow you to affordably add coverage at a later date or even convert a portion of your term policy into a permanent policy (such as whole life or universal life). 

 

Both term and permanent policies allow you to select an amount of coverage and lock in a monthly payment over the life of the policy, providing a lump sum payment to your beneficiaries when you die. Permanent policies earn cash value and remain in force as long as premiums are paid. However, they are more expensive than a term policy.  Coverage with a term policy lasts only for a specific time period (often offered at 10-, 20-, or 30-year terms), with no cash value accruing. Once the term is over, the policy coverage (and premiums) will end. Term Life is a very affordable interim solution People often delay purchasing life insurance because they think it is more than their budget can handle, and they often overestimate how much it will cost. However, term life can be an affordable way to get the coverage you need - today. 

 

At the beginning, permanent life premiums are typically higher than term life premiums, making term an affordable option to get a policy in place. But remember, term life comes with an expiration date! People who find a permanent policy more appealing often buy less coverage than they need, leaving them underinsured.  Fortunately, Term Life premiums are at an all-time low, making it an affordable option for almost any family. 

 

As you age, it gets more expensive to buy life insurance. Moreover, certain health conditions can make premiums increase - or worse, make it difficult to qualify for life insurance coverage at all. You'd be surprised at how much term coverage you can easily afford. For more information on types of life insurance, contact us today.