Finding the right life insurance products can be challenging in today’s insurance environment. As your insurance advisor, we can help you make sound, informed decisions about issues affecting your specific needs. Our philosophy is to fully understand your objectives and then translate them into solutions that provide assurance and peace of mind.
Individual Life Insurance
The Golden Rule of Life Insurance
As a planner, life insurance is something that I take very seriously. In my practice, I often scratch my head at some of the things we insure first. Lots of people purchase insurance coverage on their cell phone, or a $0 deductible glass coverage for their car, but neglect to purchase insurance on the financial engine that allows for the purchase of that cell phone and car in the first place. Why is it that we tend to get insurance backward? Wouldn’t it make more sense to insure the financial engine (you) first and only then add coverage against losses that are not financially threatening?
Buy term insurance because it is cheaper, don’t buy term it’s expensive in the long run, buy whole life, stay away from whole life. My advice: don’t over-think it! I drive a Toyota Corolla because it is financially economical for me as I typically drive 400 miles per week. However, if my job required me to haul a trailer or tote 5 kids around, a Corolla would be a terrible choice. There are many types of life insurance simply because there are many types of needs.
The most important thing when it comes to life insurance is to get the amount right. If I were to suddenly pass away, my wife and children would not necessarily worry about what type of life insurance policy I owned. What would matter most is if the policy provided the financial means so they can continue their lives without hardship. Thus, I repeat, the amount of life insurance you have is more important than the type of policy! At least in the beginning.
I will dive a little deeper into ways of determining how much coverage is appropriate for you in a future blog, but for now, just understand that the amount of coverage you choose is the most important step. Why? Simply because good life insurance companies will allow you to change the type of policy along the way as your life needs change.
Once you settle on the amount of coverage that meets your needs, then, and only then will you move on to the type of life insurance. You will hear words like term insurance, whole life, dividend-paying whole life, universal life, indexed universal life, variable life but here is the bottom line, all life insurance can be broken down into two categories: temporary and permanent.
- Temporary insurance is called term insurance and covers you for a specific time period (10, 15, 20, or 30 years)
- Permanent insurance is designed to stay with you your entire life
Which one is best? Easy, the one that fits your needs! Unless you are dead set (pun intended) on a specific product, we typically recommend term insurance for the simple fact that getting coverage, any coverage is the top priority. Term insurance is simple to put in place, for those who qualify, and if the policyholder decides their needs have changed in the future, we can adjust the type of coverage at any time.
So, the golden rule of life insurance: get the amount right! Then choose what type of policy is right for you. Like anything else, do your homework and work with someone you trust!
Business Life Insurance
Your employees may want coverage that goes beyond workers compensation. They want comprehensive life insurance and coverage for accidents, on or off the job. We can provide that added financial protection.
Don’t hesitate to contact us to discuss your options for life insurance.