If your family relies on you for financial support, it’s essential to have a plan for their well-being.
Life insurance is an affordable way to provide financial protection for your loved ones – and peace of mind for you – through the payment of a tax-free sum of money that can be used for expenses like household bills, mortgages, children’s college costs and more in the event of your death.
Who Needs Life Insurance?
If anyone depends on your income, life insurance can be invaluable. Some people who commonly carry a policy are:
- Business owners
- People with co-signed debts, like college students
The cost of life insurance premiums goes up substantially as you get older, so if a life change is coming in the near future in which someone will be relying on you for support, it can often be a good idea to get coverage while you’re younger and lock in a potentially lower rate.
What Are the Different Types of Life Insurance?
The two most common types of life insurance policies people carry are Term life and Whole life insurance.
- Term life insurance is the most popular policy with its lower premiums and more straightforward setup than other types. The insured chooses a period of time, usually 10, 15, 20 or 30 years, in which the policy is active. If the insured person passes away during the term, their benificiaries receive the benefit.
- Whole life insurance lasts for the insured’s entire life and comes with a cash value account that can be withdrawn or borrowed from (sometimes with a penalty). Premiums are significantly more expensive for whole life insurance policies, but they can be useful in more complex financial situations.
Term Life and Whole Life insurance aren’t the only types of life insurance out ther, however. Depending on your situation, Variable life insurance, Universal life insurance, or burial life insurance might be appropriate for you. Our agents are ready to discuss your situation and find a policy that can help keep your loved ones protected.
Life insurance can be a sensitive topic. Get your advice from experts you can trust.