Life insurance should be a part of your overall financial plan, but how much do you need and what policy is right for you? We can help.
The primary purpose of life insurance is to provide capital to your dependants after you die. The money is an important financial resource. It can help cover funeral costs, pay the mortgage, provide funds to run the household and ensure that your dependants aren’t burdened with debt.
Types of Life Insurance
There are two basic types of life insurance:
Temporary needs include home mortgages, short term debt reduction, family income and educational expenses that can last from as little as one year to 30 years. Term insurance provides affordable coverage for a specified number of years. It is the most cost effective way to cover costs for loved ones left behind. There are a variety of plans ranging from an annual renewable term (1year plan) to a level term plan that could last 10, 15, 20 or 30 years.
Permanent needs include those that last for your entire life, or potentially for periods of 15 years or more. Unlike term, permanent life insurance builds a cash value that increases the longer the policy is in force. Permanent needs may include final expenses and funds to cover estate taxes and retirement savings protection. Whole life and universal life plans are ideally suited for meeting these goals. With permanent life insurance policy, you’ll have guaranteed protection for your entire life.
The proper coverage can make all the difference when it comes to the loved ones you leave behind. We will help you every step of the way. Contact our agency today to discuss the life insurance program that best fits your needs.