If you haven’t yet, it’s time to think about what would happen to your family if you die. Would they be able to keep meeting financial obligations without your salary? Would they become responsible for paying off your outstanding debts? The truth is no one likes to think about their own demise. However, considering the financial aftermath helps you prepare for the worst before it comes to pass.
One of the best ways to prepare is to buy life insurance to ensure your family’s financial future. But is term life insurance or permanent life insurance the best choice? Let’s take a brief look at both options to give you a good idea of what would work well for your needs and budget.
Term Life Insurance
Sold in predetermined chunks of time—or terms, this form of life insurance is the most affordable option. You can often select as little as a year of coverage, all the way up to 30 years of coverage. However, benefits are only distributed to beneficiaries if the policyholder dies within the term. Once your term expires, you can renew coverage, but this often comes at a higher cost. Health naturally wanes as we age (causing premiums to increase with age), so buying term life insurance at a young age for a long-lasting term is the most affordable way to buy this type of coverage.
Permanent Life Insurance
Where term life insurance only lasts for so many years, permanent life insurance lasts for the policyholder’s entire life, so long as premiums are promptly paid. Along with the longer timeframe, these policies often accrue cash value over the years, making them good investment tools as well. Of course, since this coverage is more comprehensive, it does cost more to purchase than term coverage. But if your quote is within your budget, it may be worth the extra funds to offer your family protection for whatever—and whenever—the future may hold.
We’ll help you find the best coverage solution. Call First Insurance Group at (800) 511-2892 for more information on Nicholasville life insurance.