Generally speaking, as we age, our responsibilities increase, and those that we care for becoming more important and costly. Consequently, having a life insurance policy is one of the most foolproof ways to ensure that your family is cared for and financially secure should something happen to you. There are multiple types of life insurance policies – all with unique benefits and several disadvantages. Working with a professional team such as Deluxe Insurance Group in Blaine, MN is one of the best ways to ensure that your interests are best represented because we’ll take the time to explain all your options and customize a policy that works for you and your family.
When it comes to life insurance policies, there are two main types: term and whole life. As the name implies, term life insurance is valid for a specific number of years – usually 10, 15, or 20 – and remains in effect as long as you continue to pay the policy premium. Conversely, whole life insurance remains in effect for the duration of your life, starting from the moment the contract is signed and assuming that the annual premium is paid per the policy’s terms. Term life insurance is less expensive, but it comes with a finite number of years, whereas whole life is costlier but lasts longer and includes an investment component that can be borrowed against in a pinch.
Whichever type of life insurance you choose, it is important to purchase enough of a policy to cover your anticipated expenses and debts after you die. For instance, if you are the primary income owner in your household and you will leave behind an outstanding mortgage plus items like credit card debt or need to pay for college for your kids, then you’ll want to make sure your life insurance policy provides enough money to pay these costs. Give Deluxe Insurance Group a call, and we’ll help you with all your life insurance needs.