Life insurance is one of those things that people avoid talking about for a number of reasons. It can range from just not understanding the products offered to how uncomfortable it is for them to talk about death and their own mortality. Whatever the reason, the life insurance conversation is an important one!
What is life insurance and what can it mean for you and your family?
Basically, if something should happen to you, your family and loved ones would be prepared to handle their finances.
Exploring the various types of life insurance…The Basics
There are basically two types of major life insurance, Term and Whole Life.
Term Life Insurance
This is least expensive and the most basic form of life insurance. Many refer to term life insurance as death insurance since it pays out to your beneficiaries upon your death. These policies tend to be the simplest to understand and the most popular type of life insurance purchased. Term life insurance is purchased for a period of time, usually for 10, 15, 20, 25, or 30 years. During the term, the premium will remain the same. In some cases, the term life policy may be transitioned over to a permanent life insurance plan.
Permanent Life Insurance
As mentioned above, this type of plan is available and works a little differently than term life. The differences are the benefits it offers. They are:
- Death benefit
- Cash value benefit
- There is no expiration date like term life insurance – it is intended to last the span of the insured’s lifetime as long as the premium is paid
This type of life insurance policy works to provide you a cash value at the end of the term of the policy. This type of policy can be a little more expensive as it goes for your entire life. The premium in this type of policy is guaranteed for the life of the policy. That means as the the policy holder ages, their premium stays the same.
How much do I need….
That is a great question and the answer really depends on your reasons for getting the insurance. For example, are you getting it to pay off the mortgage? Are you getting it to pay for the kids college education? Are you getting it to provide for your spouse? Or, is it a combination of everything? I sit with my clients and help them determine this.
Is it expensive?
In general life insurance is very cheap. They key is not to over buy it and to start small and, in many cases you can add more. For example, when your young you need more insurance and when you get older you need less. Don’t pay for more then you need.
As an example…
My wife has $250,000 of coverage that we pay about $35 a month for.
Keep in mind that cost is directly linked to health and age. The younger you are and the better health your in the less expensive it is.
Having said that, remember that as you get older you may need less so why pay for $100,000 when you only need $25,000?
Can you get it if you have a medical issue? Yes, we can always get you some coverage.
If you have questions about your coverage or getting covered, contact me today!
I can be reached at: (813) 391-3448 or email me at Dave@YourObamacareGuy.com