Purchasing life insurance is all about protecting yourself and your family in case of a major catastrophe. These are not scenarios we ever want to face in our lifetimes but they could certainly happen without notice.
Life insurance is the utmost protection for your family in the event of your death. Not only will life insurance pay for funeral costs but it could also help your family pay their living expenses without worrying about having to move, get a new job or going bankrupt.
Term Life Insurance
This particular form of life insurance has a beginning date and an expiration date, hence the name ‘term’ life insurance. During the term (which will be determined by you and your independent insurance agent) your monthly or annual premium payments remain constant, which is nice for those who live on a careful budget.
After the term expires, however, you need to purchase another form of life insurance and the premiums are often different, possibly even higher than what you were paying for term insurance, due to your increased age.
Whole Life Insurance
Unlike term life insurance, a whole life policy will insure you for any length of time until your death. This policy only expires with your death and can be used as a wealth accumulation tool, where a portion of your premiums are invested and you can earn money on your insurance investment.
Some whole life insurance policies allow policy holders to take out loans against their policy to use for emergencies or for fun events. The only downside is your death benefits will be less if that money isn’t paid back to the account before your death. But if you’re in good health and you want to have some fun, the money is available to you.
How To Calculate Life Insurance Coverage
Every single person and family will have different needs so this is where your independent insurance agent can be of the most assistance. The amount of coverage you need is generally based on your age, the size of your family, whether or not you own a home, any outstanding loans or debts, childcare expenses and some general living expenses.
Even if one spouse is a stay at home parent, a life insurance policy would cover the tasks of this spouse that you now have to hire someone else to perform. Life insurance isn’t meant to scare you…it’s meant to offer the ultimate protection for your family.
For life insurance, call Tom at 716.684.3203
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