Coverage is unstable during life's transitions. A person's link to employer-sponsored coverage can also be cut by a change from full-time to part-time work, or self-employment, retirement or divorce.
Protecting your Future
Plan For Your Family's Future with Life Insurance
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We all want to protect our families, even after we are gone. Life insurance helps us do that. By investing a little at a time, you can ensure that money will be there to take care of them when you are not. Funds from life insurance replace your paycheck during the time they will perhaps need it most.
There are two kinds of life insurance, term and whole. Of the two, term life insurance is the most cost-effective. It is also the best option for families with children.
Term Life Insurance refers to the number of years you pay a yearly premium towards your life insurance policy. If you die during the term, your family receives the full amount of your coverage. This is a good option for families because it is an inexpensive way to guarantee financial security. For example, for a non-smoking father in his 30s, coverage of $250,000 generally costs $150-$200 a year.
Term life insurance is effective, easy and renewable. You can purchase additional coverage as your income grows or as you feel you need it. With most policies, your premium will increase annually. You can find policies that guarantee a premium for up to 10 years. You can also convert some term policies into a cash value policy when you're older. In many cases, this can be done without a health exam up to age 65.
The down side is if you outlive the term, you have invested money you don't get back. Term policies are changeable, however, so you can make them work for you. One way to do this is to find a policy that is automatically renewable for the duration of the term, particularly one that allows you to do this regardless of your health.
For example, it is possible to find a 15-year plan that allows you the option of renewal every year. You can also find a plan that gives you the option of renewing for another term. The rates for this will be higher, but it will be worth it.
Whole life insurance, a prominent type of permanent life insurance, is more like a long-term savings account, as funds are not accessible for at least 10 years. These can be good for families in some instances. This is, for example, a good investment if you need more tax-deferred savings than you have. Finding an affordable whole life plan can be difficult, however and there are often better investment options that offer more tax breaks.
So, if you have a family but don't have life insurance, take some time to explore these options. Whether you feel term or whole insurance works best for you, ensure you can keep working for your family after you are gone by investing in one or the other. It's an investment in your families' future.
Family-Health-Insurance reviews insurance services to provide information on products and options, but is not an insurer or a licensed agency. Coverage and policies described on this site may not be available in all states.
