Life insurance is essential to taking care of those you love after your death. Many Americans don’t have life insurance outside of a work policy. Unfortunately, when work ends due to retirement, or job loss, so does the life insurance. If this happens, it can leave your family in a financial bind.
Who Needs Life Insurance?
Everyone! Life insurance is beneficial to the entire family. A good life insurance policy can mean the difference between financial solvency and devastation.
Life insurance for your family means that they will be able to take care of expenses related to your death, pay bills, adjust to a single income, or leave an inheritance.
Types of Life Insurance
There are many variations of life insurance available to consumers. The three main types are Term, Whole, and Universal life insurance.
- Term life insurance is valid for a certain period of time and then expires at the end of the policy. If you die before the term ends, your beneficiary will receive a death benefit payout from the insurance company. This benefit can be in a lump sum, monthly payment, or an annuity. Term life insurance policies tend to be more affordable than whole life insurance. Whole life insurance is good for the rest of your life.
- Whole life has a death benefit but it also has a cash value that is a type of savings account included in the policy. The cash value of your insurance policy can grow, however, it can be more expensive.
- Universal Life is a hybrid of Whole Life and Term Life insurance. It can be permanent depending on how it is funded, but it can end if not funded properly. Some polices can have have Long Term Care riders to help cover the costs of LTC and some people even use them as an investment vehicle! These are complicated policies and you need an experienced agent when considering one of these.
- Final expense insurance is a type of whole life insurance that covers the expenses related to burial. Typically these have a small death benefit and can be easier to qualify for.
- Accidental death and dismemberment (AD&D) can be attached as a rider to another life insurance policy, or it can stand alone. AD&D covers unintentional death, or the loss of limbs, speech, eyesight, and hearing.
Can I Afford Life Insurance?
Of course you can! The real questions are: Did I get the right type of insurance? Is it funded correctly? Do I have enough/too much? Do I really know what I have?
The professionals at Rocket will be honest. It's not about commission, it's about life!
Contact us to get a quote.
