Do you love someone enough to spend your hard earned money on a life insurance premium-every month or year?
The truth is a life insurance policy will not benefit you; it’s a purchase you make today to protect the ones you love.. after you’re gone. Life insurance provides cash paid to those who currently rely on you to provide a secure standard of living.
Purchasing a life insurance policy can be daunting because it isn’t an easy subject to talk about. Most people get overwhelmed about how it works and are not sure who they can trust.
So where to begin?
For most people, term life insurance is going to be the best option and give you the most bang for your buck. For example, if you are a 40-year old male, in excellent health, you can get a $500k policy and lock in the rate for the next 20 years for $34.56 month or $395 a year. If you keep the policy for the full 20 years, you will end up paying $7,900 over the next 20 years. True, you will not get that money back, but just like any other type of insurance; auto, home or health you are paying for the protection and the what if… When you do the math, to pay $35 month and if you pass away your family will receive $500k immediately away is a really good deal. Another way to look at term insurance, is that you are buying cheap money for pennies on the dollar to give you the peace of mind your family is protected and can maintain a secure standard of living if you were to suddenly pass away.
The next policy I recommend is one of the best kept secrets in life insurance called a universal life policy, specifically no-lapse guarantee (GUL). A no-lapse guarantee universal policy guarantees the death benefit regardless of investment performance. And unlike the term insurance, the policy is permanent. Also, the premium is cheaper that whole life but still more expensive than a term policy.
Term life insurance word of caution:
As we said, term life insurance will be the best option for most people, especially in this economic environment. But I do want to give you a word of caution on the psychology of investing and immediate gratification.
Since you no longer have to spend hundreds of dollars each month for a small amount of whole life insurance, make sure you are saving and investing your additional money now so that when you do become closer to retirement age or if you have an emergency, you will have that money in cash available to you.
If you have any questions on term or universal insurance please feel free to ask me.
Get the lowest, instant term quote, click here
*Rates as of 02/26/2013. The information in this post is for informational purposes only and is not a guarantee of rates and insurability. Rates and eligibly are subject to the underwriting guidelines of the insurance companies and state in which you live