Life Insurance 101 📝

Owning vs Renting

A sufficient amount of life insurance can help ensure that your family’s financial future will be protected. Once you have worked with your a financial advisor to determine the proper amount based on a needs analysis of your current financial obligations, needs, wants, and assets, choosing the right type of life insurance policy is the next step. Fundamentally, There are two types of life insurance: permanent (whole-life) and temporary (term-life). Many people have questions about the differences between them. One easy way to understand these differences is by comparing them to something that is familiar to all of us—owning a home versus renting an apartment.

Does your current policy add value to your life?

If you’re like most people, you probably feel that you have a responsibility to protect those who depend on you. If nothing else, you have a responsibility to make some conscious, deliberate decisions about their future, rather than leaving it to chance and luck. Considering life insurance to protect those who depend on you is a responsible and caring act that you should feel good about.



Term Life Insurance:

A term-life policy offers protection, but chances are you'll pay premiums for many years, live to the end of your policy term, and your family may never see a payout of the death benefit. Limited choices for how long your coverage lasts unless the policy is converted to permanent coverage during the term – usually 3-, 5-, 10-, 15-, 20- or 30-year term durations. By design, premiums can increase dramatically after a certain amount of time. Offers no opportunity to accumulate cash. Premiums are initially more affordable. It is usually designed to meet short-term needs not long-term solutions. This type of policy terminates automatically with age, usually between 80-85.
Learn more on Wikipedia about Term Life

Whole Life Insurance:

Another insurance option is a permanent policy, such as whole life insurance, which can provide: Life-long coverage. This type of policy is there for when you need it not if you need it. Whole life is guaranteed to never go up in price and the face value of your policy will not ever change or go away all together. Nothing changes about this policy unless you physically make a change to it your self. It also builds cash value for you over time. Should you get into a bind or a sticky situation or need some financial assistance later down the line.This policy is definitely there as a pick me up.This policy is designed for long-term solutions.
Learn more on Wikipedia about Whole Life