Services

02. Life

Your Life Insurance Options

One of the Most Important Purchases

The two most important parts of buying life insurance are determining how much you need and the type of insurance to use. Since everyone's financial circumstances and goals are different, there is no rule of thumb to tell you how much to buy.

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  • Term Life – This is the lest expensive option that provides coverage at a fixed rate of payments for a limited period of time – the stated term (Ex. 20 year term) If the insured dies during that designated time, the benefit is paid to the beneficiary. After that period expires, coverage is no longer guaranteed. Term life is different from permanent life insurance, such as whole or universal, which can cover you for the rest of your life.
     

  • Universal  Life – Universal life insurance is one of the alternatives that can build cash value into the policy. This is done by dividing the payments made for the policy between the minimum payment amount, (which is based off of the death benefit amount for life insurance) and any extra amount above the minimum is then put into an account that can be used to fuel the growth of the policy. There are several different types of Universal Life policies to choose from.
     

  • Whole Life – Universal life insurance is one of the alternatives that can build cash value into the policy. This is done by dividing the payments made for the policy between the minimum payment amount, (which is based off of the death benefit amount for life insurance) and any extra amount above the minimum is then put into an account that can be used to fuel the growth of the policy. There are several different types of Universal Life policies to choose from.
     

  • Final Expense – This is a less-expensive, less-complicated form of whole life insurance that is sometimes a better option for senior citizens. It generally does not require a medical exam in order to purchase coverage. This can be a great help to loved ones in covering funeral expenses and other costs associated with the end of life. Final expense policies death benefit typically range from $5,000-50,000.

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No one really wants to think about death. But if someone depends on you financially, it’s a topic you can’t avoid. In the event of a tragedy, life insurance proceeds can:

  • Pay for funeral costs

  • Help pay the bills

  • Assist in supplanting spouses income (or help to maintain everything they did at home)

  • Pay off outstanding debt, including credit cards and the mortgage and student loans

  • Continue a family business

  • Pay for children's education

  • Protect a spouse’s retirement plans
     

Getting life insurance doesn’t have to be hard (or boring). Fortunately, there are plenty of resources you can turn to for assistance. A first step would be to reach out to a qualified insurance agent, who can conduct a thorough analysis of your needs, to help you get a sense of how much and what type to buy, plus information about how different life events—such as having children or buying a home—can affect your insurance needs. Lets start the conversation together!

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How much life insurance do you actually need?

Start a Conversation about Life Insurance

If you've worked hard to establish a solid financial framework for your family - investments, home equity, a savings plan, retirement accounts - life insurance is the foundation upon which it all rests. It can guard against the need for your loved ones to make drastic changes to future plans when you die. Most Americans need life insurance, and many who already have it may need to update their coverage.