Do you need life insurance?

Life insurance is a set in stone security plan designed to protect your family or the loved ones who depend on you financially. Life insurance will provide a death benefit to the person whom is your beneficiary on your life insurance plan. This is important to protect your family’s lifestyle if you were to die. It is important to also know that life insurance can benefit you even if you do not have dependents. In this article we will answer a few common life insurance questions.

Why it is important to invest in life Insurance

If you are trying to decide if life insurance is worth your penny, think of some of these questions you may want to ask yourself:

1. What would happen to your family if you were to die prematurely, would they be able to maintain their current lifestyle?
2. Would your kids be able to go to college?
3. Would your spouse be able to shoulder the load with one income?
4. If you have a child, are married, or you are carrying any kind of debt?

These are all valid questions to consider thinking about. It is important to know that the younger and healthier you are the less expensive it is. Reasoning be that the healthier you are the less of a risk you are. However we do know life is unpredictable, therefore you should want to be prepared incase. Life insurance is good for all, beginning families, established families, single adults. Everyone can benefit from it, because we all face life’s unpredictable moments head on.

Why invest in an independent agent?

Initially figuring out life insurance necessities for you or your family can sound trickier than it truly is. A first step would be to decide which life insurance policy is best for you and calculate how much you need to be covered with. The amount of coverage you need can vary depending on different life situations. These can be: how many children you have, your future earnings potential, whether or not your married, spouses future earnings potential, you and your spouse’s age, or the amount of debt you have.

It is important to consider if you want whole life insurance or term life insurance and if you would prefer to go with an independent agent. Which can be beneficial to you by providing you with a service of one on one consulting and planning. The information you provide to receive life insurance is confidential so you want to trust who you are working with that can help you financially.

One of the benefits of working with an independent agent is you can sit down, and through a comprehensive needs analysis, determine the exact amount of coverage you will need to protect the people who depend on you.

What is the difference between whole life insurance and term life Insurance?

Term life insurance will provide coverage to you for a certain period of time. It is created to only protect your dependents in case you die prematurely. If you have this policy and unfortunately die within the term, your beneficiaries receive the payout. This policy has no other value. Initially, when you purchase the policy, you have the option to choose your term. There are common terms individuals usually go off of and these are 10, 20, or 30 years. In most policies the payout or death benefit, and cost, or premium, remain the same throughout the entire term.

Whole life insurance is a bit different, in the case that it provides lifelong coverage and includes an investment known as the policy’s cash value. This is a policy to take into consideration because you and your family can benefit from this. The cash value will continue to grow overtime, and is tax-deferred, basically meaning you will not have to pay taxes on it as it accumulates income. It is a bit more complicated than term life insurance, but whole life is a form of permanent life insurance. It’s benefits are: the premium remains the same for as long as you are living, the death benefit is guaranteed, and the cash value account grows at a certain rate.

If you are interested in learning more about life insurance options, contact Stone Insurance Group at (832-403-2066) or kelly@stoneinsurancegrp.com.