There is no price you can put on your life and the legacy you leave for your family, but you can take steps to ensure they are financially secure long after you are gone. Life insurance provides your loved ones and dependents the peace of mind they need to know their needs will be met even after the loss of an income-earner or caretaker. From children and young adults to new families and retirees, it is never too soon to start thinking about life insurance.
Types of Life Insurance
There are several types of life insurance, most of which can be categorized as either term or permanent coverage. Though both types of coverage offer important benefits, they are also very different from each other. It may be advisable to carry one or both types of coverage at various points in your life. Working with an independent agent here at G&L Insurance means you will work directly with a knowledgeable agent who can help you determine which type of life insurance is right for you.
Term Life Insurance
Term life insurance is high-limit coverage that is only extended for a specific period of time – usually between 10 and 30 years. During that time, policy-holders generally pay low premiums in exchange for high limits of coverage that are designed to provide income replacement in the event of the insured’s death. While term life insurance does not generally build any cash value, it can provide hundreds of thousands of dollars to help pay off debts, cover final expenses, and continue supporting household members affected by a loss of income.
Permanent Life Insurance
Permanent life insurance is coverage that never expires. The sooner you purchase it and the better your health when you acquire your policy, the more affordable your rates are likely to be. Though permanent life insurance typically carries lower limits of coverage, it does usually provide living benefits in the form of cash value as premiums are paid into the policy over time. That cash value can be borrowed and withdrawn from the policy in a bind, or the policy can be cashed in at some point in the future.
Choosing a Coverage Amount
There is no special formula that can determine exactly how much life insurance is right for any particular person. Do you have dependents? Do you have household debt? How much income would your family need to continue their existing lifestyle in the future? The answers to these questions can help you determine what kind and how much life insurance coverage to select.
For example, a new father in his early 30’s might need enough coverage to pay off the mortgage, pay for a child’s college education, contribute to a spouse’s retirement fund, and replace his income accounting for future inflation. In this case, a term policy can provide high limits of coverage that last for decades until his children have left home and become financially independent.
When it comes to life insurance, don’t forget your spouse. Even if your partner is not an income-earner, he or she probably contributes greatly to the running of your household, providing valuable services like housekeeping, maintenance, and childcare. If something were to happen to your stay-at-home spouse, you might have to pay for daycare, a handyman, or even house cleaning services.
It is important that you make the right decisions regarding your life insurance. At G&L Insurance, we treat you like a person – not just another policy number. We can answer any questions you have about life insurance and provide you with helpful advice when making a decision. Call us today to request your free quotes. We look forward to serving you soon.
