The life insurance industry can be a confusing one. Hopefully this article can shed some light on what life insurance really is.
What is Life Insurance?
Life insurance is a type of insurance that pays a specific amount of money to the ones that you love when you can no longer provide for them. The great thing about this money is that it is tax free.
The Fact Is Life Insurance Is Important
Life insurance isn’t much fun to think about, but it’s important. You don’t want to accidently leave extra expenses to the ones that you love.
Life Insurance Gives You Peace of Mind
Life insurance protects you in many different ways. Here are a few reasons why you need life insurance:
- To give your family time to grieve instead of worrying about money
- To leave an inheritance to your children
- To give income to your family that you support
- To pay off bills
These and other reasons are why it is so important to make sure that your family and the ones you love are protected.
Most Importantly Life Insurance Is For Everyone
There used to be a time when only the man of the family would get life insurance. Now, woman are supporting the family just as much as the men are.
It’s important that everyone in the household get life insurance. The last thing you want is your family worrying about money.
Did You Know There Are Different Types of Life Insurance?
There are several different types of life insurance out there. Before you buy it is good to know your options. They include:
- Term Life Insurance
- Whole Life Insurance
- Universal Life Insurance
- Survivorship Life Insurance
- and others
What is Term Life Insurance?
Term life insurance is life insurance that lasts for only a specific amount of time. Some examples would be:
- 5 year Term Life Insurance
- 10 year Term Life Insurance
- 20 year Term Life Insurance
- 30 year Term Life Insurance
Here’s Why You Would Want Term Life Insurance
There are several reasons why you may want term life insurance. One of the main reasons is the cost of it. Term Life insurance is much cheaper then whole life insurance (life insurance that lasts your entire life).
And That’s Not All Term Life Insurance Offers More
If you have expenses for the next few years that will eventually go away, Term Life Insurance may be for you. Some examples of expenses that will go away include:
- Car Loan
- Kid’s College Tuition
- Business Loans
If you have any of the above obligations or any other obligations you may accidently pass the bill on to the people you love the most. This is why term life insurance is so important.
What is Whole Life Insurance?
Whole Life Insurance is life insurance that lasts your whole life. You never have to worry about it expiring.
Why Should You Get Whole Life Insurance?
The major benefit of whole life insurance is that it has a separate cash account. You can then borrow against the cash account. This can be used for several different things like:
- Down payment for a home or auto
- Medical Bills
- or any other major expenses that may come up.
Also, the money that you do put into it grows at a fixed interest rate.
What is Universal Life Insurance?
Universal Life Insurance has all of the benefits of Whole Life Insurance plus extra features. The payments that you make to it are not fixed. You can pay as little or as much as you want as long as you stay within the limits.
How Does Universal Life Insurance Benefit You?
The money that you put into it does not grow at a flat rate like whole life does. The money goes into mutual funds and money markets. The possibility for growth is greater.
What is Survivorship Life Insurance?
Survivorship Life Insurance is meant for couples. It has all of the benefits of whole life insurance.
The way that it differs from whole life insurance is that both you and your spouse are on the insurance. The policy pays out once both of you pass away.
This is very useful if you have children who have grown up and left the house. It leaves an inheritance to your kids and also helps pay for any taxes that might come up.
Confused? We Can Help You
The fact of the matter is insurance is a confusing subject. That is why we have insurance agents who have to go through training and certification in order to help you.
You Won’t Be Disappointed
We provide the friendliness that other big insurance company’s don’t offer.
We are locally owned and operated in Billings. You can come to our office or we can come visit you where ever you feel most comfortable.
We will make sure that you have everything you need to protect your family.
Now’s The Time To Protect The Ones You Love
We are fully qualified insurance agency ready to meet your needs. Have someone call you and give you a quote today.