Life Insurance Tips and Insights

Life Insurance Tips and Insights

Mar 11 2019

Life Insurance Tips and Insights

Considering life insurance for the first time? As life progresses, more people and things can become financially dependent on you, like a spouse, children, properties, or a business. While these developments are exciting, they also become responsibilities — making life insurance truly important, regardless of your stage of life. Whether you’re single, married, a parent, or the proud owner of a property or business, having the right life insurance policy in place can ensure financial stability, no matter what circumstances may arise. We understand that selecting the right life insurance policy may seem daunting, which is why we’ve put together the following collection of tips and insights to help guide you in this process.

Common Life Insurance Myths

There are a number of generalizations and misconceptions floating around regarding life insurance. Most notably:

  • Life insurance is expensive.
  • It isn’t a financial priority for young people.
  • Selecting a policy is complicated.

Life insurance is an extremely important piece of the roadmap to future financial stability, no matter where you may be in your life. While there are a few options to consider, a local Bearingstar insurance agent will work with you every step of the way to ensure you choose a policy that fits both your unique needs and budget.

Initial Considerations

Before we start the process of finding the right policy, your Bearingstar agent will begin by asking important questions to determine all the things in your life that may have an effect on the type and amount of life insurance coverage that is optimal for you and your loved ones. These questions may include:

  • What promises or plans are supported by your income?
  • What debts would your family inherit if you passed?
  • What percentage of your income must persist for your family to maintain their standard of living?
  • Can a life insurance policy compliment your retirement plan or expedite your mortgage pay-off?
  • How do other assets including retirement plans, inheritances and other life insurance policies offset the need for death benefit?

As you can see, it’s important to consider both basic and complex factors when deciding on a life insurance policy — which is something your local insurance agent can guide you through.

Life Insurance Terms To Understand

When deciding on a life insurance policy, you likely will come across the terms “Term Life”, “Whole/Permanent Life”, or “Joint Life” insurance coverage. Understanding the difference is critical to making an informed decision. Here’s a brief explanation of each:

Term Life – This policy offers coverage for a set amount of time with a fixed price for payments made monthly, semi-annually, or annually. The policy may be a good option for you if you’re providing insurance for temporary needs, such as debts. A typical term insurance policy will grant rights to convert a policy to permanent life insurance, making it a flexible and effective option for singles or budget-conscious families. Term insurance premiums are economical but increase at each renewal. Learn more about Term Life Insurance here.

Whole/Permanent Life – This policy type has both an insurance and a savings component. The savings component of your premium builds an accumulated cash value that you, the insured, could borrow against or withdraw tax-free. You will pay the same premium from the day you make the purchase until the day the policy matures. Learn more about this insurance option here.

Joint Life – This policy type is designed to enable two people, typically spouses, to share in one life insurance plan, and may be right for parents looking for a way to lower the cost of life insurance or to make sure their estate is protected from taxes upon their death. Learn more about Joint Life Insurance here.

Life Insurance at Different Stages

We understand that your life insurance needs may change as you pass through different stages of life. Here are more insights for young, single individuals looking to purchase Life Insurance, here are tips for couples, and parents can find tips here!

Have more questions about selecting a life insurance policy? A local Bearingstar Insurance agent would be happy to assist. Visit our website to connect with one today:

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