Life Insurance
Protect what Matters the Most
Life insurance policies have different variations designed to accommodate different budgets and lifestyles. We are experienced in crafting and always aim to find policies that align with our client’s financial objectives, and budgetary constraints.
These are the two main types
Types of
Life Insurance
Learn about the different types of life insurance and why an up-to-date policy is an important part of a sound financial strategy.
01
Term life insurance offers individual life insurance protection for a specified number of years (i.e., term). This type of insurance is usually less expensive than permanent insurance with the same face value. However, term insurance does not accumulate cash value.
02
Permanent life insurance, including whole life coverage, remains in effect until the policyholder’s death as long as the premium payments are made, unless the policy lapses or is surrendered. Most permanent life insurance policies also have some type of savings component that can build cash value over the life of the policy.
What kind of policy suits you.
How Much Insurance do you need ?
When it comes to the best type of life insurance for an individual, there is no one-size-fits-all. How much and what type of coverage is needed is based on the individual and their:
Based on these considerations, a basic rule of thumb is to have enough life insurance coverage to provide approximately 10 times your annual household income. For example, if the current household income totals $50,000, consider having a total of $500,000 in life insurance protection.
- Age
- Health
- Income, current financial situation
- Number of dependents
Furthermore, the life insurance policy most suited for an individual may change over time. Major life events like getting married, divorced, having children, or changing your income can all influence your life insurance policy.
Finding the right Insurance?
When working with an agent to assess your life insurance needs, consider these questions and answer them honestly:
- How much long- or short-term debt do you have?
- What are your long-term goals?
- How much of the insured’s income will be needed and for how long (how many years)?
- How much do you want to set aside for funeral costs and an emergency fund?
- Do I have any pre-existing health conditions that may affect my premium rates?
- How flexible is the policy in terms of adjusting coverage levels?
- What assets do you have that may be able to cover these costs?
