Protecting Your Legacy

why would i have life insurance?

To ensure your life's work is taken care of in the event of your passing.  We know life can be unpredictable, and just because you're not here doesn't mean you want to leave everyone else to suffer.  Many buy to take care of their family and loved ones.  If you're a single parent, how would your child get along without you?   Even with a partner, what will happen when all of your income and time are suddenly gone?  

Others buy this to cover debts.  Death doesn't need to mean you can't fulfill your requirements.  Many will pay off their mortgages and gift their home to others.   Many will guarantee creditors to invest in their relationship without worry.

 

what is permanent vs. temporary?

Permanent insurance is designed for permanent needs.  No matter when something happened, now or 40 years from now, you need your family to be taken care of.  It's more of an investment in your future, as permanent insurance gains money as you live.  What!? Money??  Yes, which is sometimes why it can be called "living" life insurance.  The money gained can be loaned back to you while you live making it what most long-term thinkers obtain.

Temporary coverage us for a need that has a specific length of time, such as paying off a mortgage or when your kids move out.  If those needs are only 20 years, this option will cover you until that time and then go away.  It's also cheaper!  Because the risk will eventually go away, they can more accurately assess it and in turn take more of that risk away.

 

how much does it cost?

This varies wildly.  And while you can find out by clicking right here, it has much to do with your age, health, and the amount you're leaving behind.  Often, a price is just a guess.  You have to qualify for that price by doing a health exam, which based on the results can cost much more or sometimes even less.

Here are a few good facts to know:

Young People

  • Obtain now before health problems
  • Inexpensive when started early

Middle Aged

  • Health records can dramatically effect cost
  • Smoking cigarettes can triple your cost

Elderly

  • Not available after 75
  • Short term, small amounts (under $50k)

Permanent

What is permanent life insurance?

Think of it like buying your home.  It's an investment in the future.  Yes, a mortgage is more than renting, but if down the road it actually becomes cheaper.  What's better is, just like a home, permanent life insurance builds equity.   That equity is called "cash value" which can become a new, living benefit to owning this. 

 

is this better for me?

This depends.  If you're looking for "the cheapest thing" then no.  From an overall financial standpoint though, things start to change.  Money in permanent insurance can be borrowed against later in life.  If you ever end this, you can cash out.  The money earned will eventually match the money you pay to own it, making it a financially stable option.   A brief talk can help find if this is a better choice in the end.

 

what is "cash value"?

When you buy permanent life insurance, the companies invest your money and typically make more than your life insurance costs.  You earn that money back on your policy, potentially tax free.  That money can be cashed out in your pocket or it can buy more life insurance without you having to pay a thing.  Many times people save that money in case they need to cash out down the road or take a loan out for further life improvements.


 Photo by Ryan McGuire

Photo by Ryan McGuire

Temporary

Why is it cheaper?

What is the #1 reason life insurance doesn't pay?  The policy isn't in force when you pass.  Temporary is often called "Term Life Insurance" and is only for a specific amount of time.  It starts with learning your needs and building a protection plan.  We use a multitude of insurance companies to get you the best cost and level of security.   With options, we can adjust your plan over time - like when you need to save a bit. 

 

What happens when it's over?

Temporary life insurance is like renting your home.  It's cheap right now and you can sign a lease to keep that cheap cost for a little bit.  Just like a lease it will expire and, if needed, a new one means a new contract and higher rent!   What stinks is your age and health are now major factors.  Are you in as good of shape as you were decades ago?  Are you as young?  Of course not!   If you decide it's not worth it anymore or you're too old, everything ends.

 

But will it take care of my needs?

Absolutely.  Temporary life insurance is a great way to protect your loved ones at a relatively low cost.  If you want to take care of the family until the kids are grown and on their own and you just want the least expensive way to get there, this is a great option.