Life Insurance – What Should You Purchase When?

Many people are interested in buying personal life insurance; however, knowing where to start can be confusing since there are many different products available. Choosing the right life insurance policy does not have to be difficult if buyers understand the types of policies and when it makes the most sense to buy.

What Exactly Is Life Insurance?

Unlike other insurance and investments, the main reason to carry personal life insurance is to provide money to dependents after the policyholder has died. Those most in need of life insurance are people with spouses and families, as well as businesses dependent on the policyholder to run the company and would face financial hardship otherwise.

In other words, young healthy, single people can purchase personal life insuranc; however, without financial dependents it may be better to buy a term policy to cover funeral expenses, if necessary. Yes, it is true that purchasing life insurance has a lower premium if purchased when you are younger and healthier, there is a limit to that benefit. Once married or raising a family, purchasing personal whole life insurance is advisable.

Term or Whole Life Policies – Which One Is Best When?

Term Life is the easiest type of personal life insurance policy to buy and usually the most affordable. This is why many first-time life insurance buyers start out with a term policy when they have dependents to think about. Term policies cover a predetermined length of time and amount unless renewed. The basic purpose of personal Term Life insurance policies is to cover specific periods of time in a policyholder’s life for a specific amount of money as a death benefit only.

Whole Life is a permanent personal life insurance policy that can be both a benefit and a financial investment for the policyholder and any survivors. Premiums for this type of policy usually remain the same over the life of the policy – and a portion of the premiums can sometimes be borrowed against the accumulated cash value of the premiums paid without affecting death benefit payments if needed. Whole life is a good way to have coverage at a younger age with a lower premium that will not change as long as the premium is paid.

Both of these types of policies are beneficial in their own ways. Term life insurance policies usually pay the designated death benefit over the life of the policy no matter how long premiums have been paid. It is affordable for young people and often purchased to cover a period of time when establishing a career but before having dependents to consider. Whole life policies are more expensive than term life; however, they are designed to cover a longer period of time at an overall competitive premium rate. When purchased at a young age, they are a good way to have an affordable premium over a longer period of time with a good death benefit and cash value to take care of loved ones when the policyholder is gone.

Since when it comes to buying personal life insurance, every person’s situation is different and every person has different investment goals, it is hard to determine your best life insurance choice without the help of an expert in this type of insurance policy. If you are interested in learning about the value of personal life insurance policies – even at a younger age – speak with an experienced life insurance agent and learn the best way to protect yourself and your loved ones with personal life insurance!

Need To Find Personal Life Insurance in College Station?

Let SIG Life Insurance Specialist Help You Make The Right Choice!

Call SIG at (979) 431-5015!

By |2015-01-27T12:44:19+00:00January 27th, 2015|personal life insurance in College Station Texas|