With all the different types of life insurance policies, selecting the right one can seem daunting, but in reality, the clearer your wants and needs are, the easier it will be to select the right policy.
Basically, a term life insurance policy is purely for death benefits and is relatively inexpensive. Whole life can be complex and expensive, but can provide more benefits. Whole life can be used as an investment because there is a guaranteed rate of return on the cash value.
The first thing to consider is whether or not you need a life insurance policy and if so, who will be affected in the event of your death?
Single with no dependents
You probably don’t need insurance if you have no mortgage, low to no credit card balances and no dependents. Should you die at this point in your life, you will have no financial impact on your family or friends. You might want to consider Final Expense Life Insurance that would cover your funeral and burial expenses.
If you have a family that depends on your income to manage the day-to-day expenses, such as credit card bills, mortgages and other loans, you definitely need life insurance. Term is probably the best way to go. A reputable licensed insurance agent can guide you in determining the length of policy.
Small Business Owner
As a small business owner, it’s likely that without you, your business would have a hard time operating. Getting that business started may have included using family assets, credit cards and loans, which your spouse or any family member may have contributed toward. In your untimely death, your family could be stuck with sever financial debt. Would they have the funds to buy out a partner?
Perhaps you have a partner and you both contributed 50/50 to get the business running. Would your partner be responsible to pay off the entire amount? Would your partner be able to pay off your family?
Term life insurance is most likely the best way to go when you own a business.
Older and retired
If you’re older, and your family does not rely on you financially, or if you have no dependents, you may want to consider Final Expense Life Insurance. Obviously, this covers funeral and burial costs.
The best way to ensure the right policy for you is to be clear on your life situation and to talk with a reputable insurance agent like Ron L. Reed. At Ron L. Reed and Associates, our mission is simple, “To be Clear, Concise and Conversational with our potential and current clients. Our values are People Respect, Opportunity, Passion, Excellence and Loyalty.” Give us a call or get an instant life insurance quote by filling out the form to the right.