We insure many of the most important things in our lives; our cars, our homes, our health care, and more. Insuring your life (and the income that you provide to your family) only makes sense. However, this is a type of insurance that some people don’t like to think about. Regardless of your age and income, life insurance is often an essential part of any family’s long-term financial plan. If you have people who depend on your income, it can help replace that financial support when you die. There are a variety of options when it comes to life insurance policies. With so many options available, it can be confusing to choose which policy is right for you.
There are two main types of life insurance; term and permanent, also referred to as cash value insurance. There are more variations of permanent policies, including whole life, universal, and indexed universal policies. Each has different features that are intended to accomplish different goals. Your most suited choice depends on what you want to get out of your life insurance policy.
Term life insurance is generally appropriate for people who:
● need coverage only for a certain period of time. You can purchase a policy that lasts for a term such as 10, 15, or 20 years.
● want affordable coverage that pays a death benefit if you die during the term.
Term life insurance meets the needs of most buyers. While these policies are most affordable to buy at a younger age, it is important to note that coverage ends without any kind of payout when the term expires. That means you can either continue without coverage or renew, but your premiums would be higher based on your current age and health status or you may be able to convert your term policy into a permanent policy.
Permanent life insurance tends to be well-suited for people who:
● want coverage that lasts for their entire life, whether they die next week or live past 100.
● want to accumulate tax-deferred savings as a part of your life insurance policy
Permanent life insurance is often effective for people who want a savings feature combined with their life insurance policy. The cash value accumulated in a permanent life insurance policy may be borrowed against or withdrawn depending on the policy. This could be used for any purchase, like funding your child’s education. Variations between different types of permanent life insurance involve the way the cash value grows and how you are able to access it. There are other tax-deferred vehicles that may be more effective than permanent life insurance depending on your personal goals.
Choose a policy that makes sense for you
The best way to find out what type of life insurance is right for you is to contact the knowledgable professionals at Absolute Retirement Solutions. As an independent agency, we can provide you with an exceptional selection of policies and guide you through your options to find affordable coverage that makes sense for your situation. Contact us today to get in touch with one of our agents and start planning for your family’s future.
Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company. They involve limitations, fees and charges including surrender penalties for early withdrawals. Medical underwriting may be required to qualify for coverage.
Policy loans and withdrawals will reduce the policy’s cash values and death benefit, and could cause the policy to lapse. Additional premiums may be needed to keep the policy in-force.