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Because Life Happens.... An ongoing series of informational insurance tidbits.

Life Insurance Here We Come


Well… If you’re here, the thought of life insurance has possibly crossed your mind. Maybe you’re contemplating taking the plunge into obtaining life insurance.... Maybe not. Maybe you’re just a by-stander enjoying the view as other parasailers pass on by. Just as in parasailing, there are some items of business that need to be addressed before taking the big jump! Before taking the plunge into life insurance, let’s make sure you’re harness is the right size, ( aka, you’ve got the right policy for your needs) you’re strapped in just right ( the coverages are in line with your life goals), and you’ve been thoroughly educated with all the information you’ll need in order to sail peacefully through the sky… or through your life, while enjoying peace of mind (you completely understand your different options, and you understand the costs, coverages, and benefits of the policy you have chosen).

Is this the right path for you? Is the timing right, and last but not least, what type of life insurance policy should you get?

Is Life Insurance The Right Path For You?

To be completely honest, life insurance may not be for everyone. However, there are many reasons why you would want to carry life insurance coverage, such as:

• To provide income for your spouse and dependents after your death

• To pay for your burial

• To pay off any debt you may have

• To provide means to keep your business running

• To create an inheritance for heirs

• To donate to a Charity

• To create a source of savings for later in life

Is the Timing to get Life Insurance Right

The older that you get, the higher your risk of dying, therefore, the higher your premium for a life insurance policy will be. That being said, deciding to get life insurance shouldn’t be based on age alone. There are many items to consider. You will need to look at your financial obligations, and what you can realistically put towards life insurance. Second it is helpful to look at your long-term goals, and determine what you would like to achieve or provide to others in the future. It is also necessary to ascertain your specific needs in determining when the timing is right for you.

Types of Life Insurance

There are multiple types of life insurance, however two are more commonly known, term, and whole life.

1. Term Life

This is the most basic type of life insurance. This coverage assures that a specified amount is paid to your beneficiaries upon your death. However, term coverage expires after a specific amount of time, usually between 1-30 years. If you survive the term of this kind of policy, you’re sore out of luck, and you’ll be saying R.I.P to your life insurance policy.

2. Whole Life/Permanent Life

Just as in term life insurance, upon your death your beneficiaries will receive a guaranteed benefit. The difference however, is that there is no expiration date on this type of policy. The cost unfortunately is higher, and you can expect higher premiums. An added benefit of whole life insurance is that as your cash builds value, you can access later in life for loan purposes.

3. Universal Life

Universal life insurance provides a more flexible alternative. It is also known as a cash value account. The premium payments are adjustable, and is often looked at as a retirement option, as the policy’s value is untaxed if paid out after death. This type of policy also has a built-in savings, or cash value that gains interest.

4. Accidental or Death

This option has been said to not pay out as expected, as there are so many exclusions to this type of policy. Such exclusions include suicide, or negligence. Many people use this type of insurance in conjunction with another type of life insurance policy, as the payout will be greater in the event of an accident if this type of policy is present.

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