Life is one expensive adventure. From babies to kids to teenagers to work, college, or vocational training, single, married, or in partnership, retirement hopefully … you are living! With all you have going on and all the people or places that depend on your contributions, why limit the two guarantees of life to death and taxes? Increase your legacy with life insurance.
Life is better when you make plans for what you can control. Affordable life insurance is available for long periods of time for most people, i.e. while they are living normally and in reasonable health. If you think it’s too expensive or you don’t need it, consider the burden a premature death would place on your estate and/or your loved ones. Aside from the emotional stress, the financial stress could be devastating. Take a look at the short list below of 9 concerns that may be left behind following your death:
1) Immediate expenses of funeral and burial
2) Current credit card debt
3) Tax liabilities and legal expenses required to settle your estate
4) Additional credit card debt to “keep going”
5) Mortgage, rent, car payments, and utility bills. How will they be covered?
6) Income. Can your family or those who depend on you financially make reasonable adjustments to adapt to the loss of income?
7) Employment. Is another adult in the household currently employed, or would he/she be required to immediately find a job?
8) Dependents. Can the remaining parent/guardian afford to stay in the same residence? What about child care and educational expenses?
9) Health insurance. Was the family health insurance provided through your job?
Think about what you’re leaving behind again. Read further for the introductory basics of the two main categories of life insurance on the market.
Term Life Insurance is the least costly, as the insured is paying only for the specified time period that the policy is in force. The policy term is usually 10 to 20 years. Term limits normally range from $25,000. to $1,000,000. or more. Premiums are flat throughout the term, and there is no cash value built up in term life insurance. When the policy term expires, there is no life insurance in force. This is a popular product for parents with minor and young adult children.
Whole Life or Universal Life Insurance are both forms of what the industry refers to as permanent life insurance. Premiums paid into either of these build cash value that may later be used to pay future premiums or from which to take a loan. Premiums fluctuate depending on the age of the insured and the cash value in the policy. Typically, insureds pay a substantial annual premium for several consecutive years to fuel the cash value in the policy. Both of these permanent life insurance products may be used for estate planning purposes. Policy limits may be as low as $25,000. and go up to $1,000,000. and beyond. As long as cash value remains in the policy, the policy remains in force.
Some life insurance policies allow early payouts (subject to policy terms and conditions) for terminal illnesses, while the insured is alive.
Now is the time to buy life insurance. Whether you are serious about life or not, carefully consider the practical reality of the lives left behind when you die. Life insurance is a legacy many people can plan for, control, and afford.
Your Trusted Choice Independent Insurance Agent at Richey-Barrett Insurance is serious about helping Ohio customers find a life insurance product that works for them.