A Question You Can't Afford Not to Think About
How will my family manage financially when I die?
Life insurance may be one of the most important purchases you'll ever make. In the event of a tragedy, life insurance proceeds can help pay the bills, continue a family business, finance future needs like your children's education, protect your spouse's retirement plans, and much more
Types of Life Insurance:
Term insurance the most affordable type of insurance when initially purchased, is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage
Permanent insurance by contrast provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time
Factors Affecting Your Life Insurance Needs:
Just about any life event you can imagine will have an impact on your life insurance needs. An obvious example is having a child. As you bring a new person into the world, you also bring a major financial responsibility into your life. If something happens to you, where's the money going to come from to help provide the kind of upbringing you want your child to have?
- Having a child
- Getting married
- Buying a home
- Taking on debt
- Changing jobs
- Supporting aging parents
- Changes in your business
- Changes in marital status
- Planning for college
- Planning for retirement
If you're like most people, you probably don't take the time to routinely evaluate your life insurance needs. Why might that be a mistake? Well, your life insurance needs change as circumstances in your life change. That's why it's a good idea to re-examine your life insurance needs at least every few years and certainly when big changes, or life events, occur. Contact Garvey & Associates today to get a no obligation quote.