Let’s learn about Life insurance.
Nothing is more important than life. That’s why we are so passionate about Life Insurance.
Life Insurance is the only product that helps protect your family and loved ones after you are gone.
In many ways, it is an investment in those you care about rather than something you do for yourself.
But all of that flowery talk aside, what is Life ? What does it do? How does it work? And how can it actually help your family through something no one wants to think about?
We will go over this and more in the following sections, making sure you get a good sense of what you need when it comes to Life.
What is Life insurance?
Life Insurance is a product that offers financial compensation if the policyholder becomes deceased.
While this sounds depressing, this vital coverage gives us a way to help those we leave behind, transfer wealth to those who need it, and pay for funeral expenses.
Only investments rival the ability of Life to give saved wealth to your loved ones.
But it is different. Depending on the policy, the amount of value changes – and the time period changes too.
We will get into the different types of policies available to you in a bit. For now, let’s look at some other reasons you may want Life:
- charitable donations
- pay federal death and estate taxes
- create an inheritance for your heirs
- pay final expenses
Two Kinds of Policies
There are two basic kinds of life insurance policies: Term Life and Whole Life.
First we can talk about Term. Like the name suggests, this policy covers a person for a period of time. Most policies cover terms of 10, 20, or 30 years and up.
If the policy is activated during the policy period, it pays out the agreed amount of the policy. It’s that simple. Have a $100,000 policy with a 10 year term? It will pay out if activated during that ten year period.
Prices on term policies are also very competitive, with longer timelines having a slightly higher premium since it is more likely they will be used.
All in all, Term Life is an excellent way to get into Life Insurance. It is affordable, easy to understand, and can cover just about anyone in a way that they should find comfortable.
NOTE: Term Life does not require a physical examination.
There really is a size of Term Life that fits your needs, no matter what stage of life you’re at.
Whole Life is a policy designed to cover the policyholder for the entirety of their life. It operates differently than a Term Life in other ways besides simply lasting longer.
These policies grow in value over time but have higher costs up front. They often need 10-15 years to build up value.
They also do typically require an examination, and the overall health and age of a person can greatly affect cost.
While Term Life is pretty simple, Whole Life has much more variety and can be tailored to a person’s individual situation and needs. It’s the perfect kind of policy to talk to an agent to see how it could be right for you.
What Life insurance do I need?
It’s easy to think you can guess at how much Life insurance you need. But grabbing a number out of thin air without realizing what the impact that age, health, family size, or inflation could leave you short of your goals.
The good news is that with the right agent guiding you, you don’t have to guess.
Our agents will help you determine what is the right policy for your situation. Get the right type, right amount of coverage, and the right length of policy.
Here are a few things we may talk about when we go over your Life insurance needs.:
- how many children you have
- your future earnings potential
- whether or not you’re married
- spouse’s future earnings potential
- you and your spouse’s age
- amount of debt you have
If you’re not sure how you’ll answer, get our free LIFE INSURANCE CHECKLIST.
Helping you get the Life you want.
When you’re ready to talk Life, so are we.
So many people think Life is something to wait on until it’s a last minute act of desperation. But that just isn’t how Life insurance works.
Click the link below to schedule a time to talk with a certified Life agent.
Smart planning can be a huge different maker for your family. Let’s make sure you’re ahead of the game.