One of the most important reasons that you invest in life insurance
is to protect you and your family from the financial effects of an unexpected or untimely death.
When it comes time for you to invest, it's important to find affordable life insurance coverage that fits your needs. Life insurance coverage enables you to have a death benefit readily available to your beneficiaries if you were to die unexpectedly.
If you are a single parent, it is very important that you have in place some time of
life insurance policy
in order to protect your child if something were to happen to you. Term Insurance is perfect for the single parent as it is an inexpensive policy that can provide a sizeable death benefit to your child. As a single parent, keep in mind as to who might raise your child and all of the costs that would go with it, such as food, clothing and paying for future education.
Young families have many financial obligations such as home mortgages, car payments and raising young children. There is a strong need to start saving for your child’s future as well as saving for retirement for you and your spouse. Permanent Life Insurance might be a good fit because it can accrue cash value that can be used down the road for either your child’s education, paying off bills or saving for your eventual retirement.
Retirees don’t usually have to worry about their kids since they probably aren’t living with them any longer. However, some of those in retirement might still need life insurance if they have an adult special needs child, or continued financial obligations like a mortgage. Life insurance can protect your retirement savings in case your spouse has a lengthy illness and passes away. Your retirement savings would not have to be utilized to help pay for medical bills, outstanding debt or every day expenses. Permanent life insurance or even Final expense insurance would be beneficial.
Single people find it hard to believe that they are in need of life insurance, but they could benefit from a term policy to help if they are taking care of elderly parents or if they have a sizable debt from college.
Term Life insurance
with it’s low premiums is a good choice.
It's important to familiarize yourself with the various
types of life insurance
that is available to you. There's term insurance, permanent insurance and final expense insurance--just to name a few. Let's take a closer look at the three types I've just mentioned:
- TERM LIFE INSURANCE is usually the least expensive type of coverage to own. It is designed for temporary circumstances such as the time period in which you owe on your mortgage or up until your children graduate from college. Think of term insurance as "renting" a policy since you only have the protection for a certain amount of time. The length of the policy can be 10, 15, 20 or 30 years in duration. Many people coincide the length of their policy with their mortgage loan, i.e. 30 years. Term insurance pays out a death benefit to your beneficiaries upon your death as long as premiums have been paid. This type of life insurance does not build up any cash value.
- PERMANENT LIFE INSURANCE is designed for life long protection, not temporary coverage you get from term life insurance. The cost is higher at first than what you would pay for term, but it becomes more cost effective as you age. One of the really nice benefits of permanent life insurance is its ability to accumulate cash value on a tax-deferred basis. As your policy continues to earn cash value, it can be accessed by you through loans and withdrawals. If you decide to cancel the policy, you get any accrued cash value minus a surrender charge if applicable.
- FINAL EXPENSE insurance is the least expensive life insurance policy. It can be issued rather quickly since there isn't any medical exams for the insured and there is minimal underwriting--you usually answer a few medical questions. Final expense insurance is designed with affordable premiums with death benefits ranging from $5,000 to $50,000. Your premiums are set for the entire duration of the policy and the death benefit will never decrease.
Finally, ask yourself the following questions to help find the best life insurance for your financial needs:
- How much of the total income do I provide?
- If I were to die early, how would my spouse and/or children get by?
- Do I want to make sure that there is money set aside for my child's education?
- How will inflation affect my family's future needs?
Also take into consideration any current life insurance you have now either through your employer, like a Group Policy or possibly a pension or veteran's insurance policy. Then add in other assets you might have such a real estate, savings accounts, investments and personal property.
Talk with a licensed agent or broker like
BJF Insurance Services.
We can help relieve you of the stress in trying to find the best life insurance that would best fit your financial situation. We take time to look at our client’s financial portfolio as well as their health profile, because both are the best indicators as to how much good life coverage would cost.
Taking an application is easy. Once we compare various
quotes
from only A-rated carriers, a quick application is taken. Once submitted to an insurance carrier, a medical exam is ordered and together with the exam, the application and financials, a rate of coverage is given to you. BJF Insurance Services never requires money upfront during the application process. If you are happy with the policy and premium amount, a payment is made and you are insured.
That’s all there is to it. For a no-cost, no-obligation quote, send us an email. Happy life insurance hunting!