We don’t like to think about that unexpected end. While it might be a fact…
Protecting the well being of the ones you love is of utmost importance to most people. Making sure that your family is taken care of financially is a large part of that goal. Inevitably, we all will pass away and you’re sure to leave behind loved ones. You’ll no doubt leave behind a legacy and wonderful memories, but we’re sure you’ll want to leave more than that. If you are to die at a very old age, most likely your children will be able to support themselves. What if you meet an untimely death? You want to make sure that college is paid for, mortgage can be paid, car notes don’t fall behind. One way to prepare for this scenario is by purchasing life insurance. There are two types of life insurance policies and we hope to give you the information that will help you select the right one for your situation.
Term Life Insurance
Term life insurance is the cheapest option and runs over a fixed period of time, or “term”. This term can run anywhere from 10-30 years and expires after that specific time. Term policies are guaranteed to have a fixed-rate premium during the life of the term. Once your term ends, you can choose to keep paying for the insurance, but at a higher rate. Upon your death, your family would receive a cash death benefit. Term life is a great option if you’re in good heath and want coverage in the case of a tragic event.
Permanent Life Insurance
Permanent life policies are exactly as it sounds, permanent. The policy will run for the length of your life, as long as you keep paying the premium. You will pay more for a permanent life policy, but you’ll also have much more coverage. Also, with permanent life insurance, a portion of your premium is put into an account which you can draw from in your later years. It’s life insurance but also a way to save for retirement.
These are the two types of life insurance policies that are available to you. Make sure your family is provided for and give yourself some peace of mind.