All Shapes and Sizes
Life insurance policies come in all different shapes and sizes. There are group policies and individual. Some have a fixed term while some go on indefinitely. The two most common types of policies are term and permanent also known as whole life. There are many different types of term and permanent policies in the marketplace that serve specific needs. This abundance of options and trying to figure out what is the right amount of insurance can be confusing. As an insurance agent it is my job to educate my clients and help them find the policy that fits their budget and needs.
Where Can I Get It
Most people know that they can get life insurance through their employer via a group plan. The group plans are inexpensive and have little underwriting requirements. The downside is that those policies are often not portable and the individual has little say so in the amount of coverage they can obtain. Individual policies can be obtained outside of the workplace either through going directly to a carrier or using and insurance agent.
Basic Term
A term policy means the policy has an exact time period of how long the policy will remain in force. Term policies can last for 10, 20, 25, or 30 years. One of the biggest advantages of term insurance is its lower initial cost in comparison to permanent insurance. You pay your premium and your beneficiaries will receive a death benefit if you die during the term of the policy.
What is it Good For
Term insurance is often a good choice for people on a budget, because it allows them to buy high levels of coverage when the need for protection is often greatest. Typically the greatest financial burden that is left behind is mortgage balance, education cost, medical bills, or maybe the care of elderly family members. Usually by the time the policy term ends the mortgage has been paid off, children have moved out of the house, and the fear of leaving behind a substantial financial burden has subsided.
Lifelong Protection
Permanent insurance by its name is a permanent policy. Its indefinite term and the accumulation of a cash balance make the permanent policy attractive. As the policy accumulates cash the policy holder has the option of taking a loan out against the cash balance if they are in a financial pinch, or using the accumulated cash to buy a paid in full policy with a lesser benefit are additional features. As long as you pay the premiums and have no loans, withdrawals, or surrenders, the full amount of the death benefit will be paid to the beneficiaries. The downside to the permanent policy is its higher cost. It is a more costly policy to have than the term because it accumulates cash.
The Right Combination
Life insurance is something that is better to get sooner than later. The older you get the more expensive it will be. The healthier you are the better the pricing. It is these two reasons that it is important to not delay in getting a policy in force. Contact the John J Suppa Agency today at 412 -238-8200. We will make sure your bases are covered by helping you come up with the right combination of term and permanent insurance.