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LIFE Insurance

Life insurance may be one of the most important purchases ever made. In the event of a tragedy, life insurance proceeds can help pay the bills, pay for children’s education, support a current business from closing, and protect family inheritance. It is important to have a good understanding of life insurance and its role within a sound financial plan. Decisions related to life insurance include how much to buy, what kind to buy, and how different life events such as having children, buying a home, or retiring can affect your insurance needs. Find a qualified financial professional to help you find an insurance plan in your area.

Do you need more information about life insurance? Contact a local life insurance professional in your area to find the best option for you.

Life insurance provides a cash benefit for the beneficiaries upon the death of the insured. It allows the beneficiaries to pay off debts and other expenses and it can serve as a source of income to replace any income lost as a result of the death of the insured. There are two primary types of life insurance, term life insurance and permanent life insurance.  Term life insurance provides insurance for a specific period of time at a lower cost and permanent life insurance provides a specified amount of coverage at variable rates. There is also universal life insurance, which builds cash value and is becoming a more popular option with life insurance companies.

A local financial planner can help to determine which of the following is the best option for your life insurance needs:

  • Beneficiary Planning
  • Retirement Planning
  • Term Life Insurance
  • Permanent Life Insurance
  • Universal Life Insurance
  • Whole Life Insurance
Term life insurance is only for a specific period of time and pays a benefit only if you die during that term.  The term is usually from 1-30 years, with 20 years being the most common, according to the LIFE Foundation. One of the main advantages of term insurance is that it’s much cheaper than permanent insurance since you are just paying for the death benefit, which is the lump sum payment your beneficiaries will receive if you die during the term of the policy. With most permanent policies, your premiums help fund the death benefit and can accumulate cash value.

 To determine the best option for your particular situation, contact a finance professional in your area. Term life insurance is often a good choice for younger people because it allows them to buy high levels of coverage when the need for protection is often greatest at a much lower cost. But it is not a good option if you buy a term policy and at the end of the term that you still need life insurance. Even if you paid the policy for 30 years, if you don’t use it, you have nothing that belongs to you.  And if you want to renew your term policy after it expires or buy a new term policy at that time, your age, health status or other factors may make coverage very expensive.  

Find out more information about life insurance by contacting an expert.