Wednesday, January 13, 2016

What Type of Life Insurance Coverage is Right for Me?

Life insurance isn't fun to think about and it may seem as though it's an unnecessary expense. However, if you have people that depend on you financially, you need life insurance protection. Life insurance isn't for you, it's from you - to protect your family in the event that something would happen to you. Life insurance can be confusing, which is why the best insurance company at the Lake of the Ozarks is here to help you understand it! 

4 Types of Life Insurance

1. Term - This is the simplest and generally cheapest form of life insurance. This is when you buy life insurance for a specific period of time. While it can generally be renewed, your premiums can increase based on age and health factors. For this type of policy, there is no cash value.

All other types of life insurance are permanent, but there are several different variations. In addition to the death benefit, they all offer a savings element that builds cash value. Once the balance accumulates, it is typically available to the policy holder subject to the terms of the policy. Here are the common types of permanent life insurance:

2. Whole - This policy covers your entire life, as long as you continue to pay the premiums. Your premiums will remain constant, and part of that premium is invested to become the cash value. While these policies are more expensive than term policies in the beginning, they even out because the premium does not increase.

3. Universal - While this policy is similar to a whole life insurance policy, it has the potential for higher earnings on the savings side. It is more flexible in terms of changing premiums and face value throughout the policy. There is typically a guaranteed return on the cash value. However, the disadvantage of this type of policy include: higher fees and the possibility of increasing premiums.

4. Variable - This policy usually has a fixed premium and you have control over the investment decisions for the cash value portion. This option is riskier as there is no guarantee for the cash value portion in the end.

What's Right for Me? 

Life insurance is important for anyone, at any age. How do you choose what type of policy to get though? Term life insurance may be a good choice for your temporary needs or if your funds are limited. Permanent life insurance on the other hand, may be a good option if you have long-term needs such as income for a spouse, an inheritance for your children or end of life expenses. Here are a few things to consider when choosing between term and permanent life insurance:
  • Initial Cost
  • Payment Flexibility 
  • Coverage Period 
  • Ability to Adjust Due to Economic or Personal Financial Changes
  • Desire to Accumulate Cash

Get Life Insurance Today! 

The easiest way to decide what type of life insurance is right for you is to talk to an insurance agent at the Lake of the Ozarks. An agent will be able to assess your unique situation and recommend the best policy options for your needs. Give Insure the Lake a call at 573-348-2794 to set an appointment to discuss Lake of the Ozarks life insurance. Life insurance policies increase in cost with age, so NOW is the best time to get a policy! 

Request a Free Quote Online! Contact Insure the Lake today for all your Lake of the Ozarks insurance needs! 

About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.

Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral