Is life insurance part of your financial plan?
As a spouse and a parent, life insurance is an important choice to make. In general, families need life insurance if they don’t have substantial savings to replace the income of a deceased breadwinner.
In essence, life insurance is a safety net to fall back on when you are no longer around to support your spouse and family. Life insurance allows your family to focus on mourning without worrying about finances. It can help your family cover your funeral costs, pay off remaining debt, and can even be used for your spouse to retire as planned.
As everyone’s unique financial situation is different, life insurance policies need to be tailored to your specific needs. If not, you could be cheating your family out of quality support. There are three different types of policies available:
- Term – This provides life insurance protection for a specific length of time at a fixed rate (5 years, 10 years, 20 years). If you die during the provided coverage time, this coverage pays out a lump sum to the beneficiaries. The young and healthy can benefit from securing a fixed term and enjoy low premiums – so don’t wait to purchase your insurance!
- Whole – This is otherwise known as a permanent policy. It is not defined by a specific term length, but it pays a guaranteed benefit to your beneficiaries when you die. The cash can be withdrawn for an investment such as your kid’s college education, your spouse to retire on time, or to pay off the mortgage. This is particularly beneficial for those with higher financial burdens.
- Universal – This is referred to as a flexible premium or adjustable life insurance. In this policy, the premiums, cash values, and coverage limits may be increased or decreased during the lifetime of the policy. Usually the adjustments can be made after life milestones or as your needs change.
To secure the most reliable and most suitable life insurance policy for you and your family, talk to an insurance expert at Jack Stone Insurance Agency. Contact us today in Antioch, California for all of your insurance needs.