Life Insurance and Your Family
Life insurance serves the purpose of giving your family peace of mind. It makes a financially secure future a reality in the event of a loved one passing away unexpectedly. This article is full of tips that will help family members make the best decisions when it comes to securing life insurance that is best for them.
The first thing to do when evaluating life insurance needs is imagine what goals and lifestyle choices you want to the policy to provide for. Do you want to have the house paid off, medical bills taken care of, children or grandchildren’s college paid for? Will your spouse continue to work and have an ongoing income or will they be independently secure? These are some of the questions you must begin to explore as you consider your life insurance needs; you must imagine the environment you are providing security for.
There are two common types of life insurance—term life and whole life. They are pretty straight forward—term life insurance is for a “term,” or a certain span of your life. Term life insurance may be for 5, 10, 20 years, but once that term (or span) is up, the policy stops coverage. The benefit of term life insurance is that is less expensive than whole life in the early to mid years.
Whole life insurance is for your entire (whole) life, as long as you continue to pay the premiums. The premium is for a set number of years. The younger you are when you begin the policy, the more affordable it will be. Your beneficiaries will receive the full amount of your coverage even if you pass away before the policy is paid in full, as long as you stay up to date with the premiums. That is one of the major advantages of whole life insurance. As mentioned earlier, though, whole life is more expensive than term life, but it covers your entire life, even after all premiums have been paid in full.
Figuring out the amount of life insurance you will need is a tedious process. The following is a list of expenses you may want to consider as you come up with an amount for your insurance coverage:
- Funeral costs
- Medical bills
- Car note(s)
- College fund for the children or grandchildren
- Savings for your spouse or surviving family members
- Continuing the lifestyle your spouse and family are use to
One thing to think about as you plan for life after your time on this earth has ended—leave a legacy for someone, people, or organizations that meant a great deal to you. It doesn’t have to be a lot of money to have an impact. Planning for a gift of just a $1,000 to someone to say “I believe in you” or “I believe in your cause” will perpetuate a long lasting legacy in not only what the money is used for but in their memory of you until the day they pass from this life as well.
Life insurance needs vary from person to person, but there are many levels of coverage, to better meet your needs. No matter what stage of life you are in or what your budget might be, Bobby Walters Insurance can find you the perfect policy to protect your needs. Call us at (903) 536-1000.