Life Insurance

Life Insurance

 

What are your chances of dying young? The truth is, it’s very unlikely.  And yet, thousands of people die young every day.  What would happen to your family if you are gone?  If you have children, life insurance is essential.  If you don’t have kids and you have a spouse, it is something you should consider.

There are different types of life insurance.   The most common is term insurance.  This means you buy it for a certain period of time (typically 20 years) and if you die during this time, your beneficiary receives the benefits.  If you don’t die, the insurance company keeps the money.   Term is popular because it is the least expensive.

Whole life insurance is a contract with two components:  insurance and investments.  Whole life provides policy holders with the ability to accumulate wealth as premium payments cover insurance costs.  Whole life insurance protects an individual for his/her entire life.

There is also universal life which is a marriage of term and whole.

Which product is best for you?  That depends on a number of factors.  The way to determine which is best is to have a conversation with an insurance broker.  S/he can ask questions and guide you to the best product for your situation.