Picking the right life insurance plan is no walk in the park, but you can ease your stroll with these helpful tips on how to pick the right life insurance plan.
Talking about life insurance can be an uncomfortable and morbid conversation for anyone. Who likes talking about their own eventual death? But it’s important to know that proper financial planning is required and can ease nerves about the fragility of our own mortality. Life insurance can help your loved ones in the event that you pass away. Here are a few tips on how to pick the right life insurance plan.
What life insurance options exist?
There are two primary life insurance options that are open to you, term life insurance and whole life insurance. Term life insurance is cheaper, but only lasts a certain time–with the average terms lasting 20-25 years–and does not accrue cash value. Whole life insurance is more expensive, but lasts your entire life and accrues cash value which you can use later in life.
How to choose between term and whole life insurance.
To choose between term and whole life, you must consider two things: duration and investment. Many people who purchase term life insurance only want to provide coverage for the beneficiaries until their children are independent or have fully paid off their mortgage. Whole life is for people who want to provide a death benefit to their loved ones.
In terms of investment, the proceeds are tax-free and the cash value accumulates on a tax-deferred basis. In other words, you can pay your premiums and build up an investment or cash value on the policy.
To learn more about life insurance and what it can do for your loved ones, contact Donald Weiss Insurance Services. Our dedicated team will help determine your coverage needs, helping you pick the right policy and give you the peace of mind you and your family deserve.
