End of life planning is rarely an enjoyable experience, but life insurance is vital when it comes to protecting your family. The right life insurance policy guarantees that the people who depend on you will be provided for in the event of the unexpected. Life insurance should be a fundamental component of your financial planning, just like any other savings.
What you need to know
There are many different life insurance policies to choose from and each offers different benefits to your family. Life Insurance Policies generally fall into two categories; Term insurance and permanent insurance Each coverage type has advantages and disadvantages.
Term life insurance is a type of coverage that produces benefits only if you die within the agreed upon “term”. Term life insurance is temporary, which means it is useful if your needs or financial status are likely to change after a certain period of time. For example, you may be the primary provider for your family and you may be covering all the bills. If your children will be financially independent after 10 years, you may no longer need term life insurance.
By contrast, permanent insurance is just that — permanent. It’s often referred to as whole life insurance, and it has no set end date. It offers more flexibility than term life because it acts as an investment that you can borrow against. In some cases, you can also choose where to invest the money while the account grows. Permanent life insurance offers a guaranteed payout upon your death, no matter when that may be. These policies tend to be much more expensive than term life insurance due to the certainty of your beneficiaries eventually collecting the benefits.
Advantages of Life Insurance
Having the right life insurance is essential to planning for your present and future. Not only can life insurance provide assurance for your family after you are gone, many life insurance options offer other benefits and investments opportunities you can take advantage of while you are living.
Whether you’re just contemplating securing a policy or whether you’ve been covered before, AD Larsen Insurance Services can help you select the best policy for your needs and lifestyle.