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Life Insurance: Protecting Your Family's Future

Many people are already familiar with the benefits of health, car, and home insurance, but one of the most important forms of protection that a family can have is often neglected: life insurance.

Today's families often have two breadwinners who bring home income that should be protected against any tragic and unforeseen event. With the sudden loss of a primary wage earner's income, the family can suffer devastating consequences. If you were to pass away today, would your family have the assets they need to survive? Would they have to sell the family home or risk foreclosure? Would your children be able to attend college? Without life insurance, surviving family members may find themselves in a dire financial position.

Term Life Insurance

A term life insurance policy can help provide you with the protection you need during your working years. Quotes are relatively cheap, providing you with peace of mind for just pennies on the dollar. In the event that an unforeseen incident happens, your family will receive a payment as the beneficiary on your policy, which will allow them to continue living and cope with a tragic loss. Life insurance proceeds can be paid out as a lump sum, although some carriers even allow for payments to be distributed over a set period of time as part of the life insurance contract.

Your policy should generally reflect 5 to 10 times your annual income, but you should also factor in other needs, like your mortgage or educational costs. Setting aside the time to review your financial needs can be extremely beneficial for your financial plan. Term life insurance is ideal for people who need coverage at the lowest possible cost for a set period of time. After that period expires, the coverage becomes very expensive.

Permanent Life Insurance

Unlike term life coverage, permanent life insurance can last for the duration of your life. Although premiums for permanent coverage are higher, you also get the peace of mind knowing that no matter when you pass away, your beneficiaries will receive the death benefit. Universal life insurance can also have living benefits, such as optional long-term care riders to provide you with in-home or nursing home assistance if you are unable to accomplish the activities of daily living.

There are two popular types of permanent life insurance. Whole life insurance is the more well-known option; with this choice, you pay a fixed premium throughout your life. A universal life policy gives you room to adjust your monthly premium payments and your death benefit. In addition to these two types, you can invest with your plan with a variable plan.

Permanent life insurance is also known as cash value insurance. They allow for loans and withdrawals over the course of the policy, providing for an emergency fund or even help to pay those college tuition bills in the future. You can also use your cash value plan to help support you after retirement. No matter how you use it, the flexible benefits of permanent coverage plans can go far.

Group Life Insurance

Some employers offer life insurance plans that are shared for their workers. You might find the convenience of the benefit appealing. Since the employer shoulders the cost of the premium, the premium price is often smaller than a regular individual policy, and you can have it taken out of your paycheck every month. The lower cost combined with the convenience looks good on paper. However, these group plans typically don’t yield a high enough benefit compared to individual plans. Group plans also run on terms rather than whole-life plans. Many people use their company’s group plan to supplement a preexisting plan.

Life Insurance Premiums

A life insurance premium can be paid on an interval you find convenient, whether it's monthly, semi-annually, quarterly, or annually. One of the best things you can do to ensure you're getting the maximum value out of your premiums is to stay away from smoking and to maintain a healthy weight and lifestyle. The younger and healthier you are, the lower your premium cost, allowing you to obtain maximum benefits for minimum cost. Life insurance is valuable protection and peace of mind for you and your beneficiaries. You've worked so hard to create a comfortable lifestyle for your family members and loved ones: protect your loved ones with a life insurance policy.

Life insurance is relatively easy to get. Especially if you are looking for a term life policy, you can get affordable and reasonable quotes online. If you need assistance figuring out how much life insurance you'll need, contact a licensed agent to help you through the process. Your life insurance is an important and worthwhile purchase, so get started in the process of obtaining coverage right away.