Short-Term or Longer

Millions of Americans rely on Life insurance to protect their financial security.  What type should you buy?

The Cost of Waiting

In general Life insurance quotes increase as you get older.  When you are young, healthy and insurable is the time to buy and lock in the rate.  Polices are based on a few things, including your age.  The older you are, the higher the risk for the company, the more expensive the policy will be.  Companies also look at your medical history and current health.  If you’re healthy, you’ll get a better rate. 

Temporary Coverage

The best thing about Term polices is that they’re inexpensive and depending on your age, you can get a lot of coverage for about $20 per month.  Term insurance covers you for a certain period of time, like 10, 20 or 30 years.  So, if you buy a 30-year Term policy when you’re 25, you'll choose an amount of coverage and choose one or more beneficiaries.  That policy will cover you for 30 years, until you’re 55.  You are locked into that price for the 30 years, AKA life of the policy.  If you die during those 30 years, your beneficiaries will get paid the amount of insurance you bought. The only time this type of policy pays is unfortunately if you die.

Permanent Coverage

Whole Life is one type of permanent insurance, it covers you during your entire life or 100 years.  The upfront cost is more expensive than Term policies but in the long run it’s more affordable because after you buy, it never increases in price, yet it increases in value.  It provides Life insurance but it also puts money aside for the future. Which you can borrow against or cash out.

Two Questions

Life insurance can be simplified by answering just two questions.  First we figure out how much coverage you need, then you see how much you can afford.  A licensed agent can help you quote different types of policies and different amounts.  And increase or reduce the amount, depending on what you can afford.   

Life Changes

It's important to review your policy at renewal every year.  If your income increases, your Life insurance should increase accordingly.  Update your marital status.  Update your beneficiaries by removing or adding your spouse and any new additions to the family to make sure your family is fully protected.    

Do you need term coverage or longer?