Life can be a fragile thing, and the future can change at any moment. That's why a life insurance policy is an important option to consider, especially if there are people who are dependent on your ongoing financial support.
Put simply, a life insurance policy pays out if you die while the policy is in force, with the proceeds paid to a beneficiary (or beneficiaries) that you pre-determine. It financially protects the ones you love in the event that anything should happen to you.
Life insurance isn’t for the people who die, it’s for the people who live. It’s not about your good health or how well you take care of yourself. If other people depend on you financially, then you should consider a life insurance policy.
Life insurance policies aren’t only for people who make or are worth large amounts of money. Yes, the primary wage-earner in a family with children should have life insurance. But so, too, should the stay-at-home mother of young children, since it’s her staying home that enables her spouse to be the primary wage-earner. In either case, if you want to protect your family financially, you'll want to consider your options for life insurance.
- Term Life: As its name states, this policy provides coverage for only a specific period of time or “term,” most commonly between 10 and 30 years. Term life is most often purchased to cover life insurance needs that are not permanent, such as the cost of college for children or financial needs while children are growing up.
- Whole Life: Also true to its name, this policy covers you for your whole life. It has no fixed end date, so beneficiaries will receive the benefit whenever the death occurs. The cost of a whole life insurance policy is paid out over many years in a fixed premium. This is beneficial for older people and those on a fixed income, since there’s no worry of increasing premiums.
Unlike term life insurance, whole life insurance accumulates a cash value over time. If you cancel the policy after a certain period of time, the insurance company yields the cash value to you. Similarly, you may be able to borrow some of the cash value as a loan, without the risk of being turned down or having to deal with the approval process.
- Universal Life: This policy offers many of the same features as whole life insurance, but provides for greater flexibility once the policy is in force. Like whole life insurance, universal life insurance protects the policyholder until death, no matter when that may be, and the policy accumulates cash value over time. Unlike whole life though, universal life insurance splits the death benefit and cash value accumulation into separate sections, which allows you to make changes to the policy like adjusting the premium payment amount or the size of the death benefit.
We all want to live in the moment, to enjoy each minute with family, friends and loved ones. And we know having a conversation about your own death is uncomfortable, to say the least. But we’re prepared to discuss it with you in a way that’s equal parts empathic, educational and constructive. If you live in the Rochester NY area and you are interested in learning more about life insurance policies, fill out the form below to get a free consultation.
We promise, it won’t turn out to be as bad as you think.