"What type of Life insurance is right for me?" That is a question we get all the time, and the answer might be hard to come by without some digging into your specific needs. Your stage of life and your resources are the two primary determinants. The first question we ask, is what risk you are trying to insure against. A 30 year old father of three has a significantly different risk than an 60 year old whose children are grown and living on their own independently.
You won't hear this from another life insurance agent, but there are only two legitimate reasons to buy life insurance. The first is to replace your income if there are people depending on your income to survive. The second is to transfer wealth across generational lines.
There are two basic types of Life Insurance, Term and Permanent. Term insurance is exactly what is says, it protects you for a specific term (typically 10, 15, 20 or 30 years). Permanent insurance is just that, it protects you for your total lifetime. You can imagine that the cost of insuring a defined period is much less expensive than the total life that you might live. That's why we talk about the Short and Fat policy vs. the Long and Skinny policy. Many people do not realize that their Life Insurance needs change over time. That is why the Life Insurance review is needed periodically. We recommend that these needs be reviewed with a competent professional at least every five years. Sometimes a combination of policies help to insure the varied needs that we have over time. The sandwich generation is real and this planning is affected by it.
There are many factors that need consideration before purchasing a life insurance policy to protect your family. Health, income, and debt are just a few. Most people know that they need life insurance but unfortunately all too often put it off, many times waiting until it is too late because of health conditions. A good saying to remember is "you can pay for insurance any time you want to, but you can only buy it with your health." So don't delay! For a comprehensive review of your life insurance needs contact one of our professionals today
