As you get older, life’s responsibilities seem to grow and when you have children, they become even more important. Not only are you now responsible for the well-being of yourself, but for your family as well. It’s never too early to think about the future of your family and one way you can do that is to take out a life insurance policy. It might seem a little scary at first, but it’s better to face it early and do your research when considering the policy that is best for you and your lifestyle.
Types of Life Insurance
Life insurance is paid out to the beneficiaries upon the insured’s death and is also known as a death benefit. There are different types of life insurance so that is why it’s important to consider your lifestyle choices when picking a policy.
Term life insurance is used when you want life insurance for a specific amount of time. Once you decide the amount of time you’d like to be covered, you will have to pay a premium payment which usually increases once that term is over. The good thing about term life insurance is that it’s less costly than permanent life insurance. It can be used to replace potential income or help with paying for college but is paid in a lump sum, not monthly payments.
Another type of insurance is universal life insurance which provides lifetime coverage and is flexible when it comes to your premium. It allows you to increase or decrease your premium payments over the lifetime. If you’re looking to keep your funds safe to be transferred to beneficiaries or build cash value while guaranteeing coverage, this may be an option for you.
Whole life insurance is most likely the life insurance policy most people think of when it comes to this topic. It is a permanent life insurance policy that covers your whole life. Because the amount of time that is being covered with this type of policy the payments are usually fixed and has a savings component which accumulates tax over time.
Choosing The Right Policy For You
Many insurance companies offer a deal if you bundle multiple products, so if you already like your company that you have for your vehicle or home insurance, it might be worth starting with them first when you decide to choose a life insurance policy.
Although bundling policies can save you money, it doesn’t hurt to do your research. Sometimes companies offer deals to new customers so it might be more of a hassle to switch everything over to a new company, but you could find a long term savings that makes it worth doing. All insurance companies have their own unique benefits so it’s to shop around for price, but for a company that suits your lifestyle. Life insurance policies generally take things like your health and medical history into account when determining your premium, so do your research on which company has a policy that suits the current status of your personal life and history to get the best coverage possible.
Contact Us Today
Thinking about life insurance is a pretty big deal and we know that at Willoughby Insurance. If you’re just doing some research and have questions, we can help out. Or maybe you just got married and starting a family is coming soon, life insurance is something you might be focusing on next. No matter the case, reach out so we can help figure out the best options for you today!