Life insurance should be a part of your overall financial plan, but how much do you need and which policy is right for you?
The primary purpose of life insurance is to provide capital to your dependents after you die. The money is an important financial resource which can help cover funeral costs, pay the mortgage, provide funds to run the household an ensure that your dependents are burdened with debt.
There are two basic types of life insurance: temporary and permanent.
- Temporary needs include home mortgages, short-term debt reduction, family income and educational expenses that can last from 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 (1 year plan) to a level term policy that could last 10, 15, 20 or 30 years.
- Permanent needs include those that last for your entire life, or for a period of 15 years or more. Unlike term insurance, 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.
The proper coverage can make all the difference when it comes to the loved ones you leave behind. Our agency can help you every step of the way. We work with a variety of companies that offer competitive life insurance products which can provide financial security for your and your family.