Choosing a life insurance policy can be a difficult decision, and regardless of your current stage in life there are always financial obligations that must be considered. Life Insurance provides protection for your family and loved ones if something unexpected happened to you and gives you the foundation for a secure financial future.

Important things to consider before choosing a Life Insurance policy are:

  • Where are you in life? Age, career, health, family size, family obligations.
  • How much debt do you currently have? Who would pay for this if you died?
  • Expenses that would be incurred if you passed away. Such as funeral/burial, medical expenses, etc.
  • The future needs of your family. If you have children will they attend college? How would your spouse cover expenses if you unexpectedly died?
  • Do you have personal or business plans to take into consideration? If you own your own business, or are self-employed, what would happen to your business after your death?

Types of Life Insurance:

Term and Whole Life policies are the two major types of Life Insurance. A term policy is designed to be a low-cost option with basic coverage in the event of your death. Term policies are available for specific amounts of time (10, 20, or 30 years) and assuming all premiums have been paid on time will provide a death benefit to your beneficiaries if you pass away within the specific term that you have chosen. A term policy does not accumulate any cash value making it an affordable option for life insurance coverage. Whole Life insurance policies do not have a term associated with them; they will provide coverage throughout your entire lifetime. Another notable difference in the two policy types is that Whole Life policies do accumulate a cash value. As long as the premium has always been paid on time the policy can be cashed out before your death if the need arises.