Written by Tatiana Villa
November 2, 2020
Life Insurance: The Basics
What’s the point of life insurance?
Now more than ever, life insurance has become an important element of many people’s financial plans given the heightened awareness of our mortality due to COVID-19. Life insurance has been around for centuries, for one simple reason – to help protect you and your loved ones. Whether you’re a Parent, New Homeowner, Head of Household, Single or own a car… you should have some basic coverage in place for this simple reason. Everyone should obtain life insurance coverage at some point in their life.
How much life insurance do I need?
Buying life insurance can cover multiple things that your family would be responsible for, most importantly, your burial costs. We all have different obligations and financial situations, so the need varies by individual and by family. Figuring out how much insurance you need is not as overwhelming as you may think. Begin by asking yourself a few basic questions; What are my assets I’m wanting to protect? What are my immediate, ongoing and future expenses? When you consider all things that a death-benefit needs to fund, you begin to realize that your true need for coverage is often 10 times your gross annual income, sometimes more. There are plenty of resources you can turn to for assistance, speaking with an insurance professional can help you conduct an analysis of your needs.
What’s the best policy for me?
There are several options to choose from when deciding on what kind of life insurance policy is best for you. There are two main categories, term and permanent life insurance. Term life insurance is built to cover you for a fixed period time, usually 10-30 years with possible conversion options throughout the life of the policy years. Permanent life insurance “Whole life” is a set premium to provide coverage for a lifetime as long as you continue to pay the premiums. A whole life policy can carry many additional benefits compared to a term policy but be prepared to pay higher premiums for a lower death-benefit amount. So, when deciding on what’s the best policy for me, start by asking yourself “what’s the main goal I want to achieve with having a life insurance policy?” and let your answer help make this decision while consulting with an insurance professional.
We know what it is to deal with the burden of a loved one’s passing who had no life insurance. There’s no better way for us to help you understand the importance of having coverage in place, than to share our story with you. Let us help you (407) 349-4477.
Take action today, because tomorrow is never promised…