Life insurance is an important financial tool that can provide invaluable protection to your family and yourself in life-altering circumstances. Depending on the life insurance policy and terms, life insurance can replace lost income, pay for debts and/or burial costs, and provide coverage for medical expenses for terminal illnesses or other life events.
Additionally, life insurance can provide a secure source of savings and can also be used for legacy planning, allowing money to stay with the family even after a person has passed away. Life Insurance is an absolutely necessary product for anyone with dependents and it should not be overlooked as part of one's financial equation.
When Should Someone Consider Life Insurance?
Anytime you feel like you are vulnerable to financial hardship due to life events that could be out of your control, life insurance should be heavily considered. It’s also beneficial if you’re married and/or have children, even if one partner isn’t the breadwinner of the household - both partners should still consider life insurance as a way to protect their families.
What Types of Life Insurance Policies Are There?
When it comes to life insurance, there are two main types of policies you can choose from – term life insurance and permanent life insurance. While both types of coverage provide financial security for your family in the event of your death, they each have their own unique features and benefits that set them apart from one another.
Let’s take a closer look at the differences between term life insurance and permanent life insurance to help you decide which is best for you.
What is Term Life Insurance?
Term life insurance provides coverage for a specific period of time, or “term” (e.g., 10 or 20 years). It pays out a lump sum if you die during that period, but it doesn’t offer any other benefits such as cash value accumulation or investment opportunities.
Term policies usually cost less than permanent policies but they do not last a lifetime like permanent policies do.
What is Permanent Life Insurance?
Permanent life insurance offers lifelong protection with additional features such as cash value accumulation, loan access, and investment opportunities. This type of policy will stay in force as long as premiums are paid and generally costs more than term life insurance because it covers you for your entire lifetime.
Permanent policies tend to be more complex than term policies so they require more research before purchase.
Which type of life insurance is right for you?
Both term and permanent life insurance provide financial security for your family in the event of your death, but they each have unique features that make them better suited for different situations and budgets. If you’re looking for budget-friendly coverage with no extra bells & whistles, then term life insurance may be right for you.
If you want something more comprehensive with additional benefits such as cash value accumulation or investment opportunities - then permanent life insurance may be worth considering instead.
No matter what type of policy you choose, it’s important to do your research and make sure that you understand all of your options before making a decision. Life insurance can provide financial security in the event of an untimely death so it’s important to find the coverage that best meets your needs.
We know that choosing the right life insurance policy for you and your family can seem overwhelming. Talk to a Richard Dean Insurance Agent today to gain clarity into which policy could be right for you, we are here to help you with all your insurance needs.