You buy life insurance because it’s the best way to protect your loved ones. It’s a financial decision. It’s an emotional decision. But above all, it’s about love, caring and preparing for the future. And we’re committed to helping families protect their loved ones from the financial hardships so many suffer when an unexpected death occurs, and there’s no Life Insurance in place.
Did you know that 1 in 3 American households would have immediate trouble paying living expenses if the primary wage earner were to die?
And that’s just living expenses… it doesn’t begin to address other future needs like college education, weddings, etc.
We probably all know someone who passed away without coverage. We’ve witnessed the heartache of the family that struggles financially, often forced to sell property and other assets, all because there was no Life Insurance to pay the expenses.
So why is it that so many of us are sitting here with no life insurance coverage?
What’s our excuse? We know we need it, we know it would give us peace-of-mind. And yet, we do nothing about it.
We usually find that people don’t have Life Insurance for 3 primary reasons:
- They fear it may be too complex
- They believe it’s too expensive
- Or sometimes, they think it’s just too hard to get
And to be fair, life insurance can be extremely complex when it involves corporate buy sell agreements, or Key Person Life Insurance policies for businesses.
However, when it comes to covering an individual, the process is far simpler. And depending on factors such as age and health conditions, Life Insurance can be extremely inexpensive and very easy to obtain.
2 Major Types of Life Insurance
1. Term Insurance
Term Life Insurance is a type of insurance designed to cover you for a certain period of time. For example, the next 10, 20 or 30 years.
You might be asking ‘why would I need insurance that won’t cover me for my entire life?’
The answer is simple: debt.
Most Americans have mortgages, car payments, student loans, credit card balances, and other types of debt.
And these debts tend to have a common link: they end at a certain date (assuming periodic payments are made as scheduled).
Term Insurance is designed to allow you to purchase a larger amount of coverage for a smaller premium to cover your debt for a finite period of time.
Because the coverage is only for a specified period of time, and statistics indicate that you’re unlikely to die during the term of your policy, it can be extremely inexpensive.
Consider a 40 year-old male who needs a 30 year term policy to cover his mortgage and replace some of some of his salary. He could take out a $500,000 term policy for about $2.15 a day.
2. Whole Life
Whole Life Insurance (sometimes referred to as Cash Value Life Insurance) is a product designed to cover you for your entire life, as the name implies.
Whole life has a fixed premium that you will typically pay until age 100, and as long as you continue to pay the premium, the policy will remain in force. Whole life policies can serve several purposes.
- They’re guaranteed to be there when you pass away (assuming you continued to pay the premium) to pay for your burial expenses
- You can leave money for your family, or help with the estate after you pass
- And whole life does something term insurance does not: it gains cash value
Cash value is like a savings account that builds inside the policy from the premiums you pay. Because whole life has features term insurance does not (primarily, the fact that it never runs out as long as you pay the premium), the premium is typically higher.
For the 40 year-old male, a $500,000 whole life policy may cost about $14.75 a day. This considerable increase in cost is primarily due to the fact that when you purchase a whole life policy, it’s not a question of ‘if’ a claim will be paid when you die, the only question is ‘when’ the claim will be paid.
Curious about which option is best for you?
We often find that clients prefer to have both policies in order to accomplish their financial goals.
They may purchase Term Insurance to cover their debt and salary during their earning years. And at the same time, they take out a smaller Whole Life policy – $50,000 for example – to cover final expenses.
Wondering about the cost for a $50,000 Whole Life policy?
For the same 40 year-old male, it would be around $2.00 a day.
Bottom line is, with a little planning and attention to detail, the 40 year-old male could have $500,000 of term coverage until age 70, and $50,000 of whole life that’s guaranteed to pay his beneficiaries when he dies, all for less than $5 a day.
So if you have loved ones that depend on you, the most important question is: what are you waiting for?
Life insurance is still the most effective and affordable option to insure your love.
Finding the best insurance policy for your life insurance needs can be confusing, time consuming and difficult.
However, the right insurance protection is still critical to protect your loved ones. Without it, they’re one claim away from being in serious financial hardship.
And remember, not all policies are created equal.
You probably wouldn’t go to your eye doctor instead of your dentist if you were having a toothache, right? Just because they’re both doctors doesn’t mean they have the same skillset.
Just the same, you need an insurance advisor that understands your individual needs, your financial goals, and how best to protect you and your loved ones with the right Life Insurance coverage.
We can help.
We know the life insurance market, we take the time to listen and understand your needs, and we work with multiple insurance companies so we can deliver the insurance solution that’s perfect for you, and your budget.
When you have confidence in your insurance advisor, you have greater peace of mind knowing that your family will have the financial resources needed, even when disaster strikes.
To get started on your customized solution, contact one of our Licensed Advisors, or Request a Proposal and we’ll get to work right away.