Life insurance is an important investment and valuable part of your financial planning, no matter your age or financial situation. Most families do not have savings substantial enough to replace the income of a lost loved one. Life insurance is meant to provide much needed financial security to your family in the event you were to pass away. At Willoughby Insurance, we are committed to helping our neighbors throughout Buffalo, Niagara Falls, Tonawanda, Blasdell, Williamsville, and the surrounding areas to establish financial security through an affordable life insurance plan.
It is important that you consider life insurance while you are young and healthy. As you age, premium rates begin to rise. Purchasing a life insurance policy sooner rather than later will give you access to lower rates and better coverage than if you were to delay. Life insurance can be purchased with confidence at a young age knowing that your policy is protected by the Life Insurance Company Guaranty Corporation (LICGC). The LICGC offers this protection by providing funds to New York policyholders in the event a life insurer becomes insolvent during a policy holder’s lifetime.
It is a common misconception that the life insurance benefits offered through an employer will provide adequate coverage. A general rule of thumb is you should purchase a policy which will provide approximately 8 to 10 times the breadwinner’s annual income. Life insurance offered through an employer in many cases may only offer up to a single year of income which will leave your loved ones unprotected.
There are a couple of common life insurance options available depending on your needs. These options are:
- Term Life Insurance provides coverage for a set period of time, usually 5-30 years. This tends to be one of the most affordable options.
- Permanent Life Insurance provides coverage for a lifetime, and may include an investment component. Permanent is typically more expensive than Term Life Insurance.
Permanent Life Insurance includes additional variations such as Whole Life, Universal Life, and Variable Life policies. The team at Willoughby Insurance will explain the differences between each type of Permanent Life Insurance to help you determine which is right for you and your family.
When shopping for life insurance, it is important to take into account medical expenses, burial costs, estate taxes, monthly bills and expenses, remaining mortgage, college tuition, and retirement costs. Re-evaluation of your life insurance plan should take place after every major life event. This includes events such as the birth of a child, purchase of a home, or marriage.
Life insurance is an important investment that allows you to provide for your family financially, even after you have passed. Willoughby Insurance will make sure your loved ones are adequately covered through a quality life insurance plan that meets your individual needs. Contact us today for more information on life insurance or to receive a free quote.