We never know what life has in store. In today’s world, it is very important to know that there are some things you don’t have to worry about. Many people know they need life insurance, but they are not sure of why they need it or how much it should be.
If you have others who depend on you financially, it is very likely that you need life insurance. Life insurance can give security to you and to the ones you love. A life insurance policy will provide for your dependents when you die.
Life insurance is a crucial step in planning for your future and the future of your loved ones. It can fulfill promises made to your family if you are no longer around by providing a death benefit to your beneficiaries in return for premiums paid to the insurance company. Life insurance can also provide benefits while you are living.
Whole Life Insurance
Whole life’s death benefit coverage to age 110 makes it ideal for most life insurance needs such as level protection for a lifetime, financial protection from an unexpected death of a loved one, savings program for children’s education or other needs, providing money for family living expenses in the event a wage earner dies, providing money to pay off debts after death, and providing funds to pay final expenses.
Level Term Insurance
Level Term life insurance provides low cost level death benefit for a ten, twenty or thirty year period. Inexpensive term insurance can be very valuable to a family or a business that shoulders the responsibility of providing the financial means to meet future obligations such as: family living expenses, business buy/sell agreements, children’s education needs, key person insurance, and mortgages
Universal Life Insurance
One of the biggest advantages of a universal life insurance policy is its flexibility. Premium payments can be designed to cover short-term needs as well as permanent needs. Many policyholders design their premium payments to end upon their anticipated retirement. From that date on, their cash value accumulation is used to keep the policy in force until they die or decide to terminate the policy. This can be a significant advantage over term insurance where premiums must be paid every year until death, or expiration of the policy. Term insurance premiums can be cost-prohibitive later in life and cause people to drop coverage just when they may need it the most. This is one of the reasons only 5%* of all death claims paid to beneficiaries come from term life insurance. *(1996 Life Insurance Fact Book-American Council of Life Insurance)
People work hard to afford what they enjoy in life and to pay their continuing expenses such as food, clothing, shelter, utilities, insurance premiums, and entertainment. Their ability to earn an income is their most valuable asset. If that ability is interrupted because of an accident or sickness, they may find it difficult to maintain their standard of living and impossible to plan for the future. Unfortunately, the chance of a disabling accident or sickness is greater than most people think.
Long-term care is the care you receive when you cannot take care of yourself for an extended period of time. This care can come from a number of sources such as an adult day care center, assisted living facility, community care, home care, hospice care facility, hospital long term care unit, or nursing home. Long-term care insurance enables you to transfer some of the financial risk of long-term care costs to an insurance company so that you may protect your accumulated wealth from this potentially devastating expense.