Depending on your specific insurance needs, there are many aspects to consider when it comes to attaining life insurance.
The great recession that we are currently in makes it difficult for young Americans to pay bills let alone build their nest eggs base. With the economy currently in an upswing people are beginning to pay closer attention to their financial futures which entails their retirement plans and savings, this includes the important financial planning topic of life insurance.
How important is life insurance and what are some important features?
If you are young and single with a small income, life insurance is most likely not a pressing concern. But in the instance that your income is vital to someone other than you – the unfortunate event of your death would result in a financial hardship in your home.
It is estimated that nearly 40 percent of all Americans do not have life insurance. A lot of the people who do have life insurance coverage do not fully understand the terms of their policy.
It is important to be informed on this matter. Life insurance is an easy and in most cases, an affordable way to protect your family. There are two types of life insurance that include Term vs. Whole Life. Choosing between term vs. whole life is not as complicated as it sounds. A portion of the premium for whole life insurance is set aside in order to accrue a cash value for the policy. This equates to the fact that whole life is naturally more expensive than term life. For more information on Term vs. Whole Life please click here.
A whole life insurance policy lasts for an entire lifetime of the insured person instead of just a set term and also grows in value over time to a final death benefit. A term Life policy on the other hand, can leave you with nothing after 20 years of premiums. Some life the option of being able to cash out a whole life insurance policy early for a portion of the death benefit should they want or need the money.
You pay a much higher premium for this plan and if you do cash out early you can actually incur penalties and see very little money returned to your pocket.
Some professionals recommend that you attain term life and invest in a mutual fund. The cost savings on this will ad up big time.
To learn more about life insurance and which options are right for you call us today at 386 734 3970.