Finding the Right Life Insurance for You
For many people a new year means a new resolution to kick things off. Some take a fresh new year as an excuse to jump start into improving their life. Whether you chose to set a goal to get healthier, travel more, or maybe just worry a little less, we have another way you can start this year off in the right direction. As you are thinking about a new and improved you and all the joys of life this year could bring, it may also be a good time to think about Life Insurance. You may think that you are too young or you already have one through your work and don’t need it, but unfortunately you never know what this year will bring.
Why You Need It…
Life Insurance isn’t something people enjoy talking about, but it is an important discussion to have. First with yourself and maybe even your family, then give your Encharter agent a call with any questions and concerns. Having insurance is all about being prepared for whatever life may bring your way. One of the best ways that you can prepare for the worst is with an MA or CT Life Insurance policy. What would happen to your friends and family if something happened to you? Would your family be able to afford a funeral? Would your spouse be able to support the family without you? These are questions that are uncomfortable to talk about, but it’s imperative that you do.
When you have life insurance, you know the answer to the above questions and that can give you peace of mind. Having a life insurance policy allows you to not have to worry as much about what would happen to your loved ones if you were to pass away. Did you know that there are two main types of life insurance policies? Allow us to give you some information on term life insurance and whole life insurance before you give your agent a call. As is the case with any insurance policy, it’s important that you don’t just have a life insurance policy, but you have the right life insurance policy – one that really fits you and your life.
What You Should Know…
Life Insurance is arguably the trickiest insurance policy to navigate, but our agents can help walk you through the process and answer any questions you may have. The first question a lot of people have is: why do I need life insurance? There isn’t just one answer to this question because it will depend on you and your life. However, some reasons may be to help pay funeral costs, replace lost earnings or wages, or educational benefits for children. For most of us, at least one of the above reasons is already relevant. The average funeral costs between $7,000 and $10,000. Without a life insurance policy, your family may be left to figure out how to pay for that. Having a life insurance policy could potentially be the difference between your family being in debt or not, if something were to happen to you. It would be a difficult and stressful time for them. If you have a life insurance policy you can at least eliminate the stress of having to pay for a funeral.
Aside from funeral costs, one of the other common reasons people obtain a life insurance policy is for lost wages and earnings. Whether you are the primary breadwinner in your family or you have a two-income home, we don’t have to tell you how not having your income would affect your family. The last thing you want to happen if you pass away is for your family to not be able to afford something like the mortgage or car payments. People frequently have Massachusetts or Connecticut life insurance coverage through work, but it’s also a good idea to look into a supplemental policy. Your work life insurance may not offer enough coverage, and it also may not be there if you lost your job.
Once you have established a need for life insurance, the question becomes: what kind of life insurance do I need? Here are the two main coverage options:
- Term Life Insurance
- Whole Life Insurance
Term Life Insurance
Term Life Insurance can give you the coverage you need for a particular period of your life. Some things worth noting about term life insurance is that the rates can change once the term you have chosen expires, but this also has to do with you being older after the given period of time. It’s important to think about the term you really need it for, and don’t plan on adding to each term. If you need 20 years, don’t plan on having a term life insurance policy for 10 and then worrying about the next 10. Instead, commit to 20 years right up front. This can save you money and you won’t have to worry about another policy in 10 years. Another thing to keep in mind is that term insurance is less costly than whole life insurance for equal amount of death benefit. Term insurance is the most affordable way to secure a set amount of life insurance, but keep in mind you do not build equity for a term life insurance policy.
Whole Life Insurance
If you want to build equity AND have coverage for the rest of your life instead of a set amount of time, you want to go with Whole Life Insurance. This type of policy offers coverage for your whole life instead of just for a certain period of time. While this will have higher premiums, it provides you with more long term value. Once you commit to a whole life insurance policy, you don’t have to worry about periods of time; you are setting yourself up with coverage for the rest of your life. These policies build cash value, but they do so very slowly. You can borrow against your life insurance policy, but it isn’t an investment tool and you will have to continue to make annual payments to keep the life insurance inforced. If you surrender the entire policy for cash value, you terminate the policy. This is permanent life insurance for you.
If you are still not sure if one of these is best suited for you and your life, we highly recommend you call one of our agents to discuss a life insurance plan for you. They can work with you to design a policy best suited for your life, using their knowledge of the above types of life insurance and more. Give our agents a call today to get started with a life insurance policy for you at 888.865.1244!Read More