You’ve got one life, and you are determined to live it well. That includes taking steps to build wealth and also safeguard loved ones against financial burdens long after you are gone. If you haven’t purchased life insurance yet or it has been a while since you last reviewed and updated your coverage, now is the time to contact Insurance Broker Direct to find out how easy and affordable it can be to build a better future.
When Should You Buy Life Insurance?
It’s easy to procrastinate with it comes to life insurance – especially when you are young and in good health. However, it is at that precise time when you should be thinking about life insurance, particularly if you are taking on new debts, starting a family, or even investing in a business. In fact, nearly everyone needs life insurance regardless of age, marital status, or financial wellbeing. Generally, the younger and healthier you are when you purchase coverage, the more affordable your policy is likely to be. At Insurance Broker Direct, we can help you shop and compare life insurance policies and rates to ensure you have access to competitive quotes on the coverage you need.
Employer Coverage vs. Private Coverage
You may work for a company that offers low-cost life insurance as a corporate benefit. This coverage – while beneficial – is typically tied to contingencies and limited to low benefits. That means that if you lose your job, you could lose your coverage, and it could be too late to qualify for an affordable private policy if you have developed an adverse health condition. Furthermore, the limited death benefits offered by employer coverage may barely be enough to pay off a few debts or cover funeral expenses – far too little when what your family may really need is years of income replacement. That is why we recommend purchasing a private life insurance policy that is custom-tailored to your needs instead of relying only on your employer coverage to protect your loved ones after a loss.
Types of Life Insurance Coverage
There are many different types of life insurance policies and terms that accompany them. However, most policies can be categorized as either term coverage or permanent coverage. You may find that one or both are right for you depending on your current stage of life and your plans for the future. At Insurance Broker Direct, we can help you explore the benefits of both types and determine which coverage options may be right for you.
Term Life Insurance
Term life insurance is a straightforward coverage that offers financial benefits to beneficiaries in the event of the insured’s death. The coverage is effective for a specified period of time, which could be as much as 30 years or more. The policy expires after that time, and the coverage becomes void with no cash value.
Despite its simplicity, term life insurance is very popular – particularly among working families and individuals who need high-level cash benefits and low, affordable premiums. Just a few hundred dollars per year, for example, could buy $1 million of coverage in many scenarios – money that would be tax-free for beneficiaries in the event of the insured’s death. We typically recommend term life insurance to people who have financial dependents, as well as to those who provide valuable services within their homes, such as childcare, lawn care, and cleanup. With the right coverage in place, surviving partners and dependents can pay off debts, save for the future, and continue according to the same standards of living as they do now.
Term life insurance may be right for you if:
- You have outstanding debts
- You owe money on your house
- You have children, a spouse, or other dependents who rely on your income
- You own or are invested in a business
- You wish to leave a large charitable donation or an inheritance
- You wish to pay for a child’s college education or a spouse’s retirement
- You need low premiums with high death benefits
Whole Life Insurance
Whole life insurance is permanent coverage that is not limited by terms. As a policy-holder, you can lock in a fixed rate and coverage amount that continues for life so long as your premiums are paid on time. Many people purchase whole life insurance in addition to term coverage when they are young, or they may convert existing term coverage into a permanent policy if allowed by the insurer once they are more financially secure.
Whole life insurance can also offer living benefits in addition to a death benefit. In fact, many people use permanent life insurance policies to help build wealth, as the policies typically accumulate cash value over time. You can let the value of your policy continue to build, borrow against it, or even cash it out if you wish.
Generally, whole life insurance may be right for you if:
- You want fixed rates for the rest of your life
- You want guaranteed death benefits, regardless of how old you are when you die
- You want to accumulate cash value for your paid premiums
Universal Life Insurance
Universal life insurance is another type of permanent coverage. It is similar to whole life insurance in that it never expires so long as premiums are paid in full, but it differs in that it allows for greater flexibility and potential for value growth over time. For example, universal life policy-holders may opt to pay more into the policy in the early years, allowing the money invested in the policy to grow. Then, those funds may be used to pay for a portion or all of the premiums due to financial difficulties, or it can continue to grow until the policy may even pay for itself.
Universal life insurance could be right for you if:
- You want flexibility for future premiums
- You want cash value growth over time
- You want coverage that never expires
Affordable Indiana Life Insurance
Whether you are just now exploring your life insurance options for the first time or reconsidering your coverage needs due to life changes, we here at Insurance Broker Direct can help find solutions that meet your needs. As an independent agency, we can shop and compare coverage and rates on your behalf, simplifying and streamlining your experience. To find out more about term and permanent life insurance or to request your free quotes, contact our office today.