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Life InsuranceIf we knew when we were going to die, buying life insurance would be easy, just buy it the day before.Unfortunately it doesn't work that way. So now that we know we need it to protect our families, how and what should we buy? Most people can cover the risk with a simple TERM LIFE policy. The best way to explain the term concept is that it is the same as buying car insurance. You pay a premium, if you die in that year your beneficiary gets the benefit if you live you get to pay another premium next year. To carry that a little further, you can contract with the insurance company for a guaranteed policy with a guaranteed benefit and premium for as long as 30 years. (10, 15, & 20 years are also available). When you are young and need large amounts of coverage term will cost less and give you more coverage. Permanent, Whole Life, Universal Life and Indexed Life are all terms for the "other" kind of life insurance. This is a policy you buy for life. It has guarantees and can build a savings account inside of the policy. The savings account is tax favored in as much as it is not taxed inside the policy. Many people like this concept of putting the life insurance and a savings or investment element together in one package. The advantage is that once you qualify for the coverage they can never make you medically qualify again and you can keep the policy for your entire life. At some point in the future cash value is available for you to supplement your retirement or to simply withdraw. The negative part of permanent insurance is it tends to cost more than term, at least in the beginning. Which one should you buy? I don't know as it is an individual issue based on you hope's, desires, needs and affordability. One thing is certain, if you have a family you need coverage of some kind. When you come to us we will help you decide which way is best for you Request a life insurance quote now. |
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