Life insurance provides the knowledge and peace of mind that you will be able to secure the financial future of loved ones. Life insurance premium amounts vary depending on many factors including your age, gender, medical history, the dollar amount purchased and the type of insurance applied for. The two primary categories of policies that people compare are Term and Permanent.
Term life insurance is typically the most affordable – especially for young people. It offers protection for a specific period of time, usually 10, 15, 20 or 30 years but is also available from one year at a time to up to a 40 year term. It is considered temporary coverage and is a great way to cover temporary needs like a mortgage and raising a family. Being temporary, if you stop paying premiums, the insurance ends. These policies benefit you if you die during the period covered by the policy but they do not build cash value.
If the insured person still wants coverage after a term policy expires, they will need to apply for a new policy. The premium for this will be more expensive because they are now older. If the individual has been diagnosed with various health conditions, they may be deemed as uninsurable and may not be able to obtain future coverage.
Permanent life insurance does not have a set date to expire and if set up properly and premiums are paid, will last a person’s entire life. These plans are usually intended to cover long term needs and are often used in estate planning, charitable giving, leaving a legacy to grandchildren, protecting your assets from long term care expenses, business uses and many other planning options. This type of insurance is great for children because it’s not much more than term insurance yet can last a child’s entire lifetime and build a cash value.
There are several types and variations of permanent life insurance including whole life, universal and variable. Each one has its own strengths and considerations. I recommend you talk to an experienced insurance professional who represents many different insurance companies and not just one or two companies. This way you get more choices on benefits as well as lower premiums.
How much life insurance do I need? I get this question a lot and it is always the same answer, “It depends”. It depends on your income, debt, family size, what you want it for and many other factors. As a general rule of thumb most people get ten to fifteen times their annual income.
If you are later in years and you have small financial obligations then $15,000 – $20,000 may be all you need. I have many different plans and companies to choose from so I can customize a plan to meet your individual needs.
I hope this information helps you. If you are ready to get the process started I can help you. I work with the top life insurance companies in the industry and can get you all the information you need. I can do this via email if you prefer or by a face to face appointment. While appointments are more time consuming, they are free and my clients can tell you that they always learn more and feel better about their decisions than trying to do it over the phone or computer.
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