Life insurance policies will protect your beneficiaries with financial stability and security when it matters most, in the event of your passing, life insurance provides financial help to your beneficiaries. Life insurance can help your beneficiaries with:
- Covering any lost income, helping continue the same standard of living
- Paying off debts
- Paying for your children’s education
- Covering funeral and related costs
A life Insurance policy is the most important policy for the financial well-being of a family. We ensure our cars, homes, businesses, etc., but not ourselves, the "machines" that generate the money for everything else.
The loss of one person can result in a financial hardship for family members who often do not think about these matters. We should consider several elements such as:
- The cost of a burial
- Hospital bills that remain pending
- Debts that are not yet covered
- The loss of income that the person brought home
- The loss of the family house if income is no longer available
All this can cause a potential problem for those left behind, such as our: parents / mothers, husbands / wives / sons / daughters and business partners.
In general, there are two kinds of insurance (Read the details of each policy that is offered):
Term Life Insurance
These policies are bought for a specific term. The length of a policy may be one (1), five (5), ten (10) or twenty (20) years. Generally, these policies do not accumulate money in reserve accounts. They are usually cheaper.
Permanent Life insurance
These policies could last up to 99 years, or have no time limits (as long as premiums are paid per policy agreements). Depending on the payment history and other factors, there are usually cash accumulations in these accounts which could be used by the insured at the end of a policy that has not been used (Death benefits or other pay outs).
Which is right for you? First, always ask yourself why you need your life insurance policy and what you’re trying to accomplish by having a life insurance policy. Are you insuring your life so that when you pass away your children will be able to go to college or so your spouse will be able to pay off the mortgage? A temporary form of life insurance – term life – is well suited for these concerns. If you are more concerned about providing income to a widow or widower for life, funding retirement, or passing on wealth to future generations you will find permanent life insurance to be better suited for these goals. If you have a temporary goal in mind then term insurance is probably best.
However, if you are looking to address a long term need or concern then its best to look at the right permanent life insurance policies for you. Buying insurance of any kind is often confusing. There are always a lot of factors to be considered. Consult with us today to help determine the best type of life insurance and the appropriate premiums for your situation. Our Senior Agent, Pablo Guzman, is here to help you make a decision that’s right for you! Call him at 301-929-8700