Life insurance is a curiously under-discussed topic in insurance, and yet it’s the most important risk we can address in life. Life insurance helps you to better answer the question: What will happen to everything (and everyone) you care about once you’re gone? Not only are you thinking about your affairs, but more importantly, there are your loved ones.
How your death affects their life can be planned with life insurance. For this reason, we consider it “a gift of love.” Whether you’re the breadwinner of your family or you have elderly parents or children who depend on you, life insurance can help you take care of the people you love when you’re gone. Life insurance replaces the income or assets your loved ones may need, including the mortgage, car, phone, heating, home insurance, groceries, school supplies, and even funding for college.
We’ve seen hundreds of unique scenarios motivating our clients to get life insurance, from marriage to employment in a high-risk job and other life-changing circumstances:
- A parent with a disabled child can be comforted knowing a life insurance policy would guarantee funds needed for that child’s care going forward after their death.
- The spouse of a business owner can guarantee the family business can go forward after the owner passes away. All of this is made possible with life insurance.
- An elderly couple with six grandchildren can help pay for their college.
Term Life Insurance vs. Whole Life Insurance
Searching for life insurance quotes can be emotional and overwhelming. You’re asked to consider how the end of your life will play out. It’s a big deal. Luckily, there is no insurance product that offers the amount of benefit for such a low price as life insurance. In fact, it is continually getting cheaper as people are living longer.
But the question remains: should you choose term life insurance or whole life insurance? While there are several types of life insurance plans, in our experience, people prefer term life insurance because you get the most bang for your buck, while enjoying lower upfront costs. But before you go with the most popular option, it’s important to understand how term life insurance measures up to other life insurance options.
Term Life Insurance
Term life insurance provides coverage for a certain period of time or “term.” Common terms include 10, 20 or 30 years and can be renewed up to age 70. If you die during that term, your beneficiaries receive the payout. Most of our clients have chosen term life insurance because it provides the most death protection for a reasonable price. Plus, if they get the plan when they’re relatively young, the cost is much lower compared to other plans. It also has a built-in feature where policyholders can build cash value once they can afford higher premiums.
Whole Life Insurance
Whole life insurance is a type of permanent life insurance that covers your entire lifespan with a tax-deferred cash value investment component that grows slowly over time. Whole life insurance policies are the “dinosaur” plan since the benefits don’t attract people like they used to. Those looking to build up tax-deferred savings typically use these plans.
Universal Life Insurance
Universal life insurance is another type of cash value insurance plan that is meant to add more flexibility on your premium payments, meaning, you can adjust premium costs if your financial situation changes. However, this also could slow down your cash value build up, and the premiums are much more expensive than term life insurance premiums. Like whole life insurance, the cash value component included in universal life insurance plans allows you to build up tax-deferred savings. However, this model actually causes cash value to diminish over time.
Tips for Choosing Life Insurance
Get It While You’re Healthy
Insurance rates go up if you have certain medical conditions. While some carriers are reasonable, if you take medication for manageable issues, not all conditions are covered. If possible, get it before you experience any health issues.
Prepare for the “Anything”
We can plan, but we never really know when our lives will end, and the lives of our loved ones will change forever. A common car accident could take the life of one spouse and leave the other paralyzed and without supplemental income. We urge our clients to create plans that would continue to pay bills and care for children, or whatever the case may be.
Consult the Experts.
To be frank, you only die once. Our experienced team of life insurance experts has helped hundreds of people choose plans that suit their needs and wishes. Let us help you create a plan that feels right.
Thank you for considering IB&C Insurance Services to help you with the details of your generous decision to get life insurance. Please feel free to stop into the office at 1105 Sutton Way, Grass Valley, CA, or call us directly at (530) 272-1234 to learn more about your options.
We proudly provide plans for residents in Grass Valley, Nevada City, Penn Valley, Auburn, Roseville, Rocklin, Yuba City, and Marysville.
Request a Life Insurance Quote
Request a quote from one of our attentive, thorough and local brokers to find out which life insurance policy will be right for you.