What Kind Of Life Insurance Do I Need?
When considering life your life insurance coverage options, you can either choose term life coverage or permanent coverage.
When Does Term Life Insurance Make Sense?
- You don’t see a need for coverage lasting more than 20 or 30 years.
- Affordability is a major driver in your decision
- You are not interested in cash value and prefer to save in your company sponsored retirement plan or an IRA
Term life insurance insures you for a specified term such as 10, 15, 20, 25 or 30 years. Your premiums will stay level for the duration of the term, but will increase substantially if you want to keep coverage after the term ends. For most families, term life insurance is the best option. It offers affordable protection when you have the expenditures of raising a family, paying off a mortgage, saving for your child’s education and saving for retirement. Once your home is paid off, your children are financially independent and you have saved a retirement best egg, your need for life insurance should diminish.
When Does Permanent Coverage Make Sense?
- You can comfortably afford the higher premiums associated with permanent coverage
- You truly have a permanent need or preference for life insurance coverage
- You would like the idea of cash value savings that can be accessed in the future
- You have amassed an estate that will most likely be subject to estate taxes
There could be some cases where permanent coverage is necessary. Permanent life insurance policies like whole life or universal life offer permanent coverage with a cash value savings component. Permanent coverage can play an important role in estate planning, covering final expenses, planning for a child with special needs, charitable giving and even retirement planning if the policy is designed properly. Some people simply prefer to buy lifetime coverage to leave a legacy to loved ones.
Converting Your Term Coverage to Permanent Coverage
If you aren’t sure which type of coverage is best for your situation or you want permanent coverage but can’t afford the higher premiums right now, you can simply purchase a term policy that is convertible to permanent coverage. You can convert your term coverage to permanent coverage without proof of insurability. In other words, if your health class was ‘Preferred Best’ when you purchased your term policy, you would still be considered ‘Preferred Best’ health class with your new permanent policy. Purchasing a convertible term policy when you are in excellent health makes more sense than waiting until you can afford a permanent policy.
We Can Help You Decide Which Policy is Right for You
We take an unbiased approach to life insurance planning. Once we understand your goals for coverage, we will tailor a plan specific to your needs. We have access to the best term life insurance products on the market today. If you have a permanent need for life insurance, we also have access to universal and whole life policies as well. Give us a call at 877-205-4172 or you can email us at email@example.com for a free no obligation consultation.