September is Life Insurance Awareness Month, so I thought it would be a good topic to explore. You could say I started my business career many years ago, when I became a Life/Casualty Agent. It is a topic I know something about.
It does have a place in your financial plan and can be a valuable investment, depending on your unique, personal financial situation. Probably the most popular reason to buy Life Insurance is to help support your loved ones and cover large debts such as mortgage or student loans in the event of your death. A good age for buying a policy is considered to be your 30’s when you are in good health and considered financially responsible.
The 2 most popular kinds of Life Insurance are term and whole life. Both kinds are a contract between the policy holder and an Insurance Company. The policy holder makes premium payments and in return the policy provides financial protection. If the policy owner passes away while the policy is in effect, the benefit is paid to the beneficiaries. Term Life is more affordable as the premiums usually do not change for the term of the policy which is usually 10-30 years. Whole Life tends to have higher premiums, a cash value, and does not expire.
Life Insurance is usually not needed once people reach their 60’s and 70’s because at that point they are retired, kids are grown, and large debits are usually paid off.
It is a good idea if you have Life Insurance, to review your coverage and reasons for having it, once a year, and if you do not have a policy.. Do you need one?