As the seasons transition and we enter fall, it’s a great time to reflect on the importance of securing your loved ones’ future. September is primarily recognized as Life Insurance Awareness Month, a season dedicated to highlighting the significant role that life insurance plays in protecting financial stability for you and your family.
Life insurance is more than just a financial product. It’s designed to offer a safety net to your loved ones in the event of your unexpected passing. This financial protection can help cover essential expenses like mortgage payments, education costs, debts, etc. There are two main types of life insurance that you can purchase: Term Life and Permanent Life.
Term Life Insurance has a specified ending date for the term period, where rates are consistent throughout. Individuals looking for life insurance coverage for a specific debt or situation could benefit significantly from term life insurance. However, once the term policy ends, you can either renew at a higher rate or be left without life insurance.
Permanent Life Insurance policies provide lifelong coverage and the option to build cash value. This type of policy is best suited for those who want to make cash value and guarantee a payout for their loved ones, no matter when they pass away. Generally, permanent life is more expensive than term life, but it could result in a greater payout for your family, depending on your goals. (It is important to note that all guarantees are subject to the claims-paying ability of the insurer.)
With the understanding of the different types of life insurance policies available, Life Insurance Awareness Month serves as a reminder to assess your family’s financial needs and explore your options. Providing your family with financial security is invaluable. By taking the time to understand the different policies and options surrounding life insurance, you can make informed decisions that are best for you and your family.
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This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability ofthe issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.