No one is too young to begin considering life insurance. If you have debts, wish to leave a financial legacy, or have current (or future) dependents, there is a life insurance policy for you. Insurers offer several types of coverage, each of which offers different benefits that may be right for you at various stages of life. By working with an independent insurance agent, you can ensure you are getting coverage that works for you both now and in the future.
Have you considered what would happen to the ones you love if you were to pass away? How would it affect their financial future? Insurance is about more than covering your final expenses. It is about protecting your legacy and the livelihood of the ones you love. Before you select a life insurance policy, you will need to know the answers to several questions, including:
- Do you have any debts that would be burdensome to your family?
- Do you have dependents that rely on you for income?
- How long will you have dependents that rely on you for income?
- Do you wish to fund any major expenses (i.e. a child’s college education)?
- Do you wish to fund a financial contribution to a charity or special organization?
- Do you anticipate your coverage needs changing in the future?
- Do you anticipate major changes in your health in the future?
In most cases, the younger and healthier you are when you purchase coverage, the more affordable your life insurance protection will be.
Term Life Insurance
Term life insurance is temporary coverage designed to provide income replacement at times in life when you have a spouse, children, or other dependents that rely on you for income. Term life insurance does not accumulate cash value, but it does provide a high death benefit – usually $100,000 to $1 million or more – in the event of an untimely passing. Term life insurance is typically purchased during the peak earning years, which often coincide with the years young children or spouses depend on a policy-holder for income or household services, such as childcare. It may also be purchased to guarantee a business partner the continuity of a business. Term life policies are purchased for pre-determined periods of time, with some of the most common policy terms being 10, 15, 20, and 30 years.
Whole Life Insurance
Whole life insurance is permanent insurance that accumulates cash value over time. The policy never expires, and death benefits are paid regardless of how old an insured individual is when he or she dies. Generally speaking, whole life insurance pays a fixed amount, although some insurers allow policyholders to increase the value of a death benefit at various stages of life. A portion of the premium builds cash value – usually created by investments made by the insurance company. The policy can be exchanged for its cash value, or it can be borrowed against without tax consequences. With traditional whole life insurance, premiums are typically fixed for life. There are other types of whole life insurance, such as universal life, which offer different terms.
Universal Life Insurance
Universal life insurance is a form of whole life insurance that provides the benefits of both a permanent policy and a term policy. There is a great deal of flexibility with universal life insurance – a benefit that many policy-holders appreciate as financial and dependent needs change over time. You can choose to pay different amounts into the policy at different stages of life. Money that has accumulated in a universal life account can be used to lower future insurance premiums if necessary. In addition, the value of a universal life insurance policy can be invested for potentially greater returns.
De Pere Life Insurance Quotes
You cannot put a price on good advice. Your life is the most precious and valuable thing you have. When it comes time to protect it, make sure you are putting it in good hands. Here at Brian Van De Hey Insurance, we understand how important it is to find the right life insurance. We work closely with you to find out your goals and coverage needs. For more information about the different policy types and to request your free quote, call us today. We look forward to serving you soon.
