Life Insurance

The sad fact is that 40% of the US population has no life insurance, leading to financial tragedy to those left behind. 

There are many kinds of life insurance, but they generally fall into two categories: term insurance and permanent insurance.  Blurring the line a bit are various types of universal life insurance. 

Term insurance is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.

In contrast, permanent insurance provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time.  Later in life, this cash value can be used in other ways, such as a supplement to retirement--and it is not necessarily dependent upon the stock market's performance.   The fact is that death is eminent for everyone, so owning permanent insurance leverages that fact.  It is the only type of insurance in which the payout (upon death) is a certainty. 

Some policies may allow riders to be added, such as coverage for a child, disability, or even long-term care and these are worth consideration. 

It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances, needs, and financial goals.

But remember, the best way to figure out the amount and type of life insurance that makes sense for your particular situation is to meet with a qualified and licensed life insurance professional and we're happy to help.