If something happened to you tomorrow, would your family be okay? Would your spouse, parents, or children be able to cover costs and continue onward without sacrificing quality of life?
In order to protect your loved ones should tragedy strike, life insurance is an essential addition to your portfolio. Providing a payout upon death, life insurance can offer support in times of challenge depending on many factors, like premium amounts, plan type, and age upon death.
Term Life Insurance
Term life insurance is the most popular and most affordable form of life insurance. As the name implies, term life insurance covers a specific period of life, often ranging from 20 to 40 years. In essence, this kind of policy is designed to cover the middle of one’s life, generally in prime earning years. Seen as a temporary fill-in for lost income, term insurance is generally purchased upon starting a family, growing a business, or another financially demanding life event.
While structured similarly from company to company, term life insurance can take one of two benefit models: level term and decreasing term. A level term policy pays the same benefits throughout the life of a policy; should the insured party pass away after a year of coverage or 29, the benefits paid out will be the same. With a decreasing term policy, applicable benefits decrease slightly year over year, often in 1% increments. In turn, premium prices also decrease.
Whole Life Insurance
Whole life insurance does not have an expiration date; instead, the entirety of one’s life is covered. Generally significantly more costly than term insurance, whole life insurance provides a consistent and permanent safety net. As with term insurance, however, multiple varieties of whole life insurance are available.
Traditional Whole Life Insurance: with traditional insurance, premiums and benefits remain flat over the lifetime of the policy.
Universal Whole Life Insurance: a more flexible option, universal insurance allows you to raise death benefits based on passed medical examinations and lowered premiums over time depending on total cash value paid into your policy.
Variable Whole Life Insurance: arguably the most unique, variable insurance combines death benefits with a savings account that can be invested in stocks, bonds, or funds. If your investment tactics are successful, you may receive benefits far in excess of your premium balance. However, there is an element of risk traditional policies do not carry.
Understanding Your Options
While you are young and healthy, planning for the future may not be an immediate priority. However, obtaining life insurance is an important step forward. When you want to consider your options and discuss your life plans with a professional who can guide you in the right direction, The Jordan Insurance Agency is here to help. Offering caring, compassionate advice tailored to your unique circumstances, there’s nothing we can’t offer. Call or click today for a quote!