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Get an online life insurance quote today in order to protect your family’s future. Life insurance is NOT the thing, most people like to think about. But when you die, your family will thank you if you have a life insurance policy.
Getting a life insurance policy is a contract with an insurance company. In exchange for paying the company premiums over time, the insurance company is agreeing to pay your family/beneficiary a sum of money after you die. As long as you die within the period covered by the policy – your beneficiary gets a payout. It’s an important safety net for anyone who depends on you financially. The life insurance payout can pay for debts your family has, like mortgages, etc. There’s no restriction on how the funds can be used.
There are multiple forms of life insurance available.
Term life insurance: this covers a finite period of time, such as 10 years, 20 years, or 30 years, and there is no cash value. If you die within the term, your beneficiary receives the payout immediately.
(Read this article on what to do when your term life insurance expires)
Permanent life insurance: This costs more than term life insurance, but has additional features like cash value which you can borrow against, and grows over time. Whole life the best form of permanent life insurance. There are other forms too, like universal, variable, and variable universal.
With term life, you have choices in policy length, and it’s the most affordable way to buy life insurance as well.
With whole life, you’re building cash value.
With universal life, you’re building cash value, in addition the premium payments are flexible, with the death benefit amount also being flexible. The cash value of the universal life insurance policy is usually linked to the investments the policy is involved in.
Delancey Street recommends life insurance for anyone who has loved ones who depend on them. This means parents, breadwinners, etc.
Breadwinners should get life insurance because the insurance can replace lost income so your family can continue surviving if you die. Term life insurance can cover your working years, in case you die during this critical period of time
Stay at home parents should also get life insurance, since if you die – the life insurance can cover the cost of paying for services like child care, college, etc. Term life can cover the years your kids are young, where you aren’t working.
Divorced parents should also consider getting life insurance. The policy can cover the support payments that a divorced payment might’ve made if he/she didn’t die. Term life can cover the years where you are being required to make child support payments.
Parents of special needs children should also consider getting life insurance. Life insurance can make sure the child has financial support after the parent dies.
Homeowners with a mortgage should consider it mandatory to get life insurance. The policy can cover your mortgage payment so your family doesn’t have to move, or be worried about your house. Term life insurance can match the years of the mortgage.
High networth individuals should consider having life insurance, because it can provide funds for your heirs to pay estate or inheritance taxes. Permanent life insurance is best for people with estate tax concerns.
What is the most sufficient form of life insurance?
Term life insurance is sufficient for most families. It costs less than whole life insurance, and you can choose any term you wish. Typically, families get insurance that matches the years where people are depending on your financially. By the term the term ends, the financial need for life insurance isn’t as heavy (ideally).
You choose term life if you:
Need life insurance to replace your income over a certain period only, such as the years you’re raising children, or paying the mortgage. Want the most affordable coverage, and and can’t afford permanent life insurance. Most term life policies are convertible to permanent coverage typically.
You choose whole life if you:
Want to provide money for your heirs to pay for things like estate taxes. Here’s a map of state estate and inheritance taxes. Have heirs who might be forced to sell off your estate to pay the tax bill without an insurance payout.
Have lifelong dependents, such as a special needs child. Life insurance can fund a special needs trust in order to provide care for you child after you die.
Want to spend your retirement account savings, but still want to leave some sort of inheritance for your family.
Life insurance isn’t a purchase you’ll make often. You might not know where to start. Here’s what you should do.
Determine how much life insurance you need
The amount of life insurance you need depends on your family’s needs. If you have debts to pay, have to fund a college education, then your needs are great.
Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.