No one likes to talk about the worst happening to you or someone in your family. If you have someone who depends on your income, one of the most important things you can do is purchase life insurance. It is less expensive than you think and can provide financial stability during the grieving process and beyond.
Different Types of Life Insurance
Term Life Insurance
Term life insurance is the most affordable kind of life insurance. It will usually provide a level premium over a certain number of years, typically 10, 20, or 30 years, but it has no cash value. This is the best kind of insurance for those in their child-bearing years to provide protection for spouses and children in the event of an untimely death. It is most important for the main breadwinner to have coverage, but we sometimes also forget that stay-at-home moms needs life insurance coverage too. Although they are not earning an income, there would be a significant financial burden to cover childcare, housekeeping, and other duties should something happen.
It is a good guideline to have coverage for at least 8-10 times your income. For example, if your household income is $100,000, you should have at least $800,000 to $1,000,000 in life insurance.
However, something is better than nothing. Purchasing coverage for 1-2 times your income can still provide great relief in the event of the unexpected.
Universal Life Insurance
Universal life insurance is type of permanent life insurance that is a combination of whole and term life insurance. Universal policies will usually have cash value, and your premiums or death benefit may adjust over time. It is a good option for those that want life-long protection of insurability without the high cost of whole life insurance.
Universal policies are a great option for parents or grandparents to purchase on their children or grandchildren when they are young to guarantee they have coverage for life, so matter their health condition.
Whole Life Insurance
Whole life insurance is a permanent life insurance policy that will cover you until death as long as the premiums are paid. Whole insurance premiums are usually fixed and won’t increase due to market conditions or age. Whole life policies are a good fit for those that want predictability of a fixed premium and death benefit over a lifetime.
Final Expense Insurance
Final expense insurance is a life insurance policy with a smaller death benefit that is specifically earmarked to pay funeral and other end-of-life expenses. Final expense insurance is usually best for those with pre-existing conditions that may be unable to qualify for a larger death benefit. We even offer options for those that may be in a nursing home or have been diagnosed with certain conditions previously deemed “uninsurable”. Even if you have been denied for life insurance before, give us a call at 615-919-1009 and we will most likely have options for you.