“We’re getting life insurance for Christmas kids!”…said no family ever. Tis’ the season of giving, love, and joy. We spend countless hours thinking about the right gift for our friends and loved ones. This year, consider a gift that, although it may not be colorful or edible or “useful” per say, would never be returned or re-gifted. Have you ever considered giving the gift of life insurance?
If others depend on you for financial support, how will you provide for them in the event of your death? A life insurance policy is a safety net that ensures your loved one’s future financial obligations are met, covering items such as funeral costs, outstanding debt, estate taxes and everyday living expenses.
If you have a significant other, both of you should have a life insurance policy. A death can be a financial burden during an extremely difficult time. What would you do if your stay-at-home partner should pass away? How would you pay for expenses such as childcare and other domestic items that used to take two salaries to manage? If you are younger you may not have given it any thought but if it should happen, how would you or your partner/spouse pay for a funeral? Are you prepared? Even if you already have life insurance through your employer, you may be under-insured and not even know it.
There are two basic types of life insurance: term life insurance and permanent life insurance. The type of life insurance policy that best suits you will depend on your unique needs. To help you decide, we’ve covered the basics:
Option #1: Term Life Insurance
Just as its name implies, term life insurance covers you for a specific period of time, or term, that you choose. Since it offers a death benefit but no cash value, term life insurance is an inexpensive way to protect your beneficiaries for a specified period of time. With term life insurance, once the term expires, your coverage ceases and the policy has no further value. It’s important to note that rates generally increase along with the insured’s age.
Option #2: Permanent Life Insurance
Permanent life insurance is any form of life insurance other than term. Examples are whole life, universal life and variable life. These policies combine term life insurance with a long-term, tax-sheltered savings plan. Whole life is the most basic type of permanent life insurance. It provides coverage that lasts a lifetime and also builds up a cash value that you can borrow against, withdraw or use to pay future premiums. The rates for a whole life insurance policy remain stable over the life of the policy but premiums are initially more costly than for term insurance.
Regardless of whether you choose a term or permanent life insurance policy, both can afford protection and peace of mind knowing you have the coverage when you need it most. Think of how great a gift like peace of mind would be to those you love.
For more information or to discuss your options, Call us today at (508) 824-8666 or click here to request a quote.