Many people choose not to deal with life insurance, because they feel like it is a waste but it’s something that you will regret not having in the case of the untimely death of a spouse or loved one.
Here are 3 basic things you should know about life insurance.
1. Choosing between term and whole life
Life insurance comes in two forms.
Term life insurance is usually cheaper and will provide you with higher insurance amounts. However, it is called “term” insurance for a reason. It will only cover you for a certain amount of time. The policy may cover you to age 70 or 75. That means if you happen to pass away one day after your 75th birthday, your policy will have expired and your family will receive nothing.
Whole life insurance stays in affect as long as the policy is paid for or the cash value of the policy is enough to cover the policy’s payments. As the cash value of a whole life policy increases, so does the death benefit and that means more money for the ones that you love.
2. Term insurance uses
Term insurance serves a valuable purpose. It is designed as a vehicle for protecting your family. It can provide a payout large enough for your family to pay off a mortgage, provide supplemental income for bills, and buy out your portion of a business interest. Term coverage is a good choice for these type of purposes.
3. Robust protection
Having a mix of term insurance and whole life insurance is the best way to be well protected.
Term policies will be less expensive and have higher payouts than whole life. They will cover you until your income needs decrease. A whole life policy can pick up from there.
Don’t wait until you are 70 or 75 to purchase a whole life policy. Most policies that offer enough money for your final expenses cost more as you age, are dependent on your health, and may not be available after age 75. That means that you could spend your entire life paying a term policy and still not have coverage when you need it. Having a proper mix is important.
The variations are many and can be confusing. The professionals at John B. Wright have the tools and the experience to evaluate your needs and explain your alternatives in simple, plain talk, and to follow up with you on a regular basis to make sure you and your family are always well covered. For more information on life insurance options call 800-224-6693 or fill out the contact form on our website here.
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