We buy insurance to protect the things that are important to us in the event something bad happens to those items. Cars, Rv, Boats, Motorcycles, Golf Carts, Home, Jet Skis and many other things that make our lives good and make our lives fun. Not only is it important but it is necessary by law or agreement that we do buy insurance in case of a loss, but what about our life insurance?
Other types of insurance policies are for losses that may occur, but life insurance is for a loss we are CERTAIN will occur. It may be tomorrow or 80 years from now but the fact remains that we do not live forever and there is always someone left to deal with the financial responsibility of the life you left behind while dealing with their own personal grief over your passing.
There are many choices for life insurance such as Term, Universal Life, and Whole Life just to name a few. The best way to find out what type and how much you need is to do a financial life assessment.
Here are just a few of the questions to consider:
How much would it cost to pay off your mortgage?
How many children do you have and how much will it cost to pay for their education if I passed before they are grown and on their own?
Do I want to use life insurance as part of my financial planning?
How much debt do I currently carry such as credit cards, car loans or student loans?
Are you a stay at home parent? We need to talk about just have valuable you are to the family. How much money would it take to pay someone else to do all the things you do now for your family if you died today?
Keep in mind that as your life changes, so can your needs. It is important to talk to a professional about your options. Getting quotes on line can give you an idea about price, but it does not give you the professional guidance necessary to make the best decision based on your needs.
Whether you're new to life insurance or are reevaluating your current life insurance policy, it's smart to stay informed. This empowers you with confidence that you have the right life insurance policy to protect your family, one that fits your needs and budget.
Term Life Insurance
Term Life Insurance Explained
Term Life Insurance is defined as insurance protection in the event of death for the person insured if they pass during that particular time limit stated in the policy details. That time can be 10,20,or 30 years.
For example: Bob is 25 years old and purchases a $100,000 term life policy that provides coverage for a 20 year time frame. If Bob dies at the age of 30 the death benefit would pay out $100,000 to his beneficiary assuming Bob has been paying his policy premiums to keep the policy active.
There will be no death benefit paid if Bob dies after the 20 year term limit has expired.
There are many types of term life insurance such as Annual Renewable, Level Term and even Decreasing Term.
Please call our office for a more detailed explanation of the differences in these types of term life insurance and how they can be used to your benefit. 813-886-4446
Universal Life Insurance
Universal Life Insurance Explained:
Universal Is a very flexible policy that features both term and whole life . You can vary the amount of your premium with Universal Life Insurance policy's by using part of your accumulated earnings to cover part of the premium cost. You can also vary the amount of the death benefit.
For flexibility, you will pay higher administration fees, but the premium is usually inexpensive compared to Whole Life, but higher than term.
There are more life insurance plans that are variations of the above such as Variable Life and Indexed Universal Life. These products are a specialty and require a much more in depth conversation.
Please call our office for a more detailed explanation of the differences in these types of Universal life insurance and how they can be used to your benefit. 813-886-4446
Whole Life Insurance
Whole Life Insurance Explained:
Whole Life is a bit more expensive than Term life but the policy stays in effect until your death, assuming again the premiums have been paid to keep the policy in force.
Whole life also offers a cash reserve build up over the years , but you do not really have any control over how the money is invested.
Example: Jerry pays for a $250,0000 whole life insurance policy. Some of the money you put into the whole life policy will go into a savings program, which then earns interest or is put towards other investments. In the end the end a whole life policy will provide a larger benefit than a term policy and the policy does not expire after a certain number of years.
There are a few variations of Whole Life insurance as well so it is important that we sit down and discuss what is in your best interest .
Please call our office for a more detailed explanation of the differences in these types of whole life insurance and how they can be used to your benefit. 813-886-4446