Perhaps you’ve thought about life insurance, perhaps not. You may think that when you pass away your family’s needs will be covered by your savings and investments. It may be better to think again.
Usually, $5,000 – $6,000 is the cost of the funeral alone. Don’t’ forget the estate taxes, uncovered medical expenses, and debts that your dependents will have to pay for when you depart from this life. The proceeds from a policy can be a saving asset to the people you leave behind. It will provide economic stability to your family once your income ceases to exist. The money from your policy will help your loved ones maintain their lifestyle without worry and pay off college tuitions and mortgages.
Knowing Your Life Insurance Options
When it comes to life insurance, the 3 basic types are Term, Universal, and Whole Life. Do you know which would best suit your needs?
The least expensive is Term life insurance and it also has no investment component. It has similarities to a car and homeowners insurance. The payment is either monthly or annually and you’re insured for a specific death benefit.
A system where cash values are build up at the same time having insurance protection is Whole Life insurance. A lifetime of protection for a level premium is provided by whole life policies. Policies are sometimes set so premium schedules could pay 20 years for premiums and then stop and the lifetime coverage is maintained all the while. However, it costs more than term life insurance.
With universal life insurance, the benefit of tax-deferred investing and the comfort of life insurance protection is provided. Because insurance programs of this type of policy is the most flexible, they can be tailored based on the individual’s specific needs. Dependent on the insurer are the investment options within a policy. A wide range of investment options from fixed income to equity based investing are offered by most companies.
Choosing Your Life Insurance
Because of all the choices of life insurance, working with a knowledgeable insurance broker is important so you can get quotes from companies. The insurance cost increase as your age increases, so it may be time to call your broker and consider life insurance.
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