Life Insurance Choices - Term or Permanent, Which is Best for You?
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In initial discussions with clients about the best type
of life insurance to purchase, we are often asked about what
types are available. Generally speaking, there are two types
of life insurance: term and permanent. The two main types of
permanent insurance are referred to as whole and universal.
In some situations, a custom financial planning solution may
include both. Here are three key factors to consider in making a decision: Duration of Coverage - The longer period of time you need insurance protection, the more consideration one should give to permanent life insurance. Some examples of permanent needs includes: financial needs of loved ones, final expenses, contribution to favorite charities and estate taxes. Some examples of temporary needs are: educational expenses for children and large loans (home mortgage, vehicles, college loans, etc.). Premium Changes - Permanent life insurance premiums are generally level and payable for life. Term life insurance premiums are level for a pre-set period of time (usually 5, 10 or 15 years), after which they can increase dramatically or require a medical exam for continued eligibility. Cash Value - Term insurance has no cash build-up. Permanent insurance combines a death benefit with a savings component. The savings component can build cash value – against which the policy owner in some cases can borrow funds for an immediate need like paying for a child’s education. |
| While insurance terminology can be
confusing, don’t let it lead you to avoid making a life
insurance decision. We can visit with you in our offices or
at your home on a no-obligation basis to answer questions
and dispel any confusion. As a local independent insurance
agency, we not only provide highly personalized service, but
also have access to a multitude of life insurance carriers
with competitive prices. So take the first step and call us. Make 2009 the year to take a serious look at your life insurance needs. Please contact our new associate, H. Louis Rocheleau III, In Millbury at (508) 865-4488. (to list) |
