Life Insurance

​Not everyone has it, but everyone needs it!

It has become a common occurrence to see postings on social media asking for donations to cover medical and funeral expenses after someone dies without life insurance.  However, life insurance can be very affordable and everyone should have some type of life insurance to protect their loved ones after they die. 

As insurance brokers we get asked regularly to tell people how much life insurance they should have.  There are “calculators” you can use to come up with answers, but one way to find out how much life insurance you really should have is to calculate all of your family’s expenses if you pass away.  You should include debts, liabilities, funeral expenses, annual salary, and future expenses like college tuition, a larger house, new vehicles, and maybe even the cost of a full-time nanny or maid. You can pay your premium monthly, quarterly or yearly. You save money by paying yearly and quarterly, but you are also more likely to cancel since those premiums can be hard to pay in full if you are experiencing financial difficulties the month they are due.
 
There are several different types of life insurance. Figuring out the type that fits your family's needs can be daunting, but here is s brief overview of the three main types.
 
Term life is the most cost-effective, and is often the best option for younger families needing large payout amount in case of the early death of a spouse and/or parent. This type of life insurance is where you can choose to be covered for a set term, such as 5, 10, 15, 20, 25 or 30 years. During that time, you usually pay fixed premium on it and are covered for that set amount of time as long as premium payments are made.
 
Whole life is a life insurance type that covers you during your lifetime and pays the beneficiary upon your death. One of the benefits of whole life is a tax advantage to the beneficiary and the ability for it to have cash value. Another great perk of whole life is the younger you are when purchasing a policy, the lower the premium amount, and it stays low for the rest of your life, as long as it is paid.
 
Thirdly, Universal life is another type of life insurance. This type can be pricey but comes with some good benefits as well. The best advantage is that you can build cash value and have flexible premiums and death benefit amounts.
 
All of these different life insurance types are advantageous, it just depends on which one is right for you, your family, and your wallet. Your house is insured, your car is insured, and your cell phone is insured… Is your life insured? 
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