When shopping for life insurance it is important to first consider what it is you are trying to accomplish. Consider these questions:
Are you trying to protect your family from future financial hardship?
Are you looking to utilize your life insurance policy as an investment?
Are you looking to help your family pay off the mortgage or college tuition for the kids?
Each of these questions lead us to different life insurance strategies. A good insurance agent will ask you several questions about your financial situation, family needs and health status. All of these questions will direct us towards the very best way to protect your family with the least amount of financial outlay.
There are many different life insurance policies, but here are the 3 most popular:
Term Life: these policies are the most affordable and great for the younger person who doesn’t have a lot of extra money but needs to protect his family in the short term. It is also great for the family that has a solid financial plan but wants to have a policy that will pay the house off or allow for his or her children to get through college without being concerned with the cost.
Universal Life: these policies are perfect for the family that wants an affordable policy that is sure to be around when the insured person passes away. These policies carry very little cash value and are not a good buy for people looking to use life insurance as an investment. Universal Life is the most cost effective strategy to ensure a death benefit whenever the insured were to leave us.
Whole Life: A Whole Life policy has a lot of flexibility in the way it is funded and would be the best of the three for those that would like to use their life insurance policy as an investment.
Regardless of your age, financial situation or health…a life insurance strategy is a critical conversation you must have with your insurance professional. We welcome the opportunity to share our knowledge with you.