It’s time for your life insurance check-up.
September is National Life Insurance Awareness Month, so it’s a great time to review your coverage.1
If you don’t have any life insurance, you’re not alone. Life insurance is one of those “someday” things for many people – but the cheapest time to buy it is probably today.
There are two kinds of life insurance: term and permanent. Additionally, there are three kinds of permanent life insurance: whole, universal, and variable.
How do these forms of life insurance differ, and how do you find out which type of coverage is right for you?
Time is Running Out
2021 is the final year to lock in the 4% guaranteed interest rate on permanent life insurance policies.1
The way to find out is to look at where you are in life, so that you can assess your current insurance needs. Have you reviewed your insurance lately? Don’t think you need life insurance? If so, consider the following potential factors that may make it a good idea:
In any of these circumstances, you may require life insurance. If you have coverage, changes in your life may demand an update.
Whole Life Can Be an Asset for Balance
If all of your eggs are in one basket, you might be running a risk.
The affordability of life insurance may surprise you. Many people think it is expensive, and so often, it is not. The non-profit insurance education group Life Happens recently conducted a study about this and found that people think life insurance costs three times as much as it actually does. The reality: a 20-year term life policy with $500,000 in death benefits can cost you less than $50 a month.2,3
Life insurance is intended to help your loved ones financially after you die. The proceeds from a life insurance policy may help your spouse, partner, or family members manage finances if they have to adjust to life without your income. The death benefit may also be used to meet funeral costs and other final expenses, which may run into the tens of thousands of dollars.
Are you still unsure about buying life insurance, or do you suspect that your current insurance coverage needs to be updated? Please contact me and I will be happy to assist you in evaluating all the factors and help you choose an appropriate policy.
We are always here to help. If you have questions or concerns please go to Schedule an Appointment or call 916-833-6100.
We seek to provide you with the clarity, confidence, commitment, and choices to achieve your financial goals, giving you a newfound understanding of just how much is possible.
1. Guarantees are based on the payment of required premiums and the claims paying ability of the issuer. Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
2. LifeHappens.org, 2021
3. ValuePenguin.com, 2021
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.