When it comes to life insurance, there are many different types of policies that can help ease the financial burden that comes with the tragedy of an unexpected death. There are several ways to analyze if someone needs life insurance, how much they need, and how long they need it. While these methods are effective, they can prove to be quite complex and confusing.
Just as effective as those methods can be asking yourself a couple simple questions:
- Do you need Life Insurance?
Life insurance is most often needed in situations where your family would experience financial hardship, or even a change in their quality of life if something were to happen to you. It can also be needed to cover any debts that you have outstanding that you would not want your family to have to worry about (mortgage, cars, etc.).
- If yes, what is the cheapest way to get the protection you need?
The two most common types of life insurance that people use are Whole Life Insurance & Term Life Insurance. They are appropriately named as whole life insurance is simply life insurance that carries its benefit throughout someone’s entire life, and term life insurance covers individuals for a specified period or term. Whole life insurance is generally much more expensive. This is because as long as the policy owner keeps up with the premium payments until death, the insurance company will have to pay out the benefit. Term insurance is generally cheaper because there is a smaller chance that someone will pass away during the coverage period.
While these are not the most exciting questions to address, they are an important part of ensuring your financial plan is sound, and your family is well protected.
We are always here to dive into this analysis with you and help determine what is best for you and your family!
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Insurance guarantees are based on the claims paying ability of the issuing company.