Life Insurance - Whole Life Or Term?

A life insurance policy allows you to set aside money to provide a measure of financial security for your family upon your death. It can help your family meet the financial needs previously covered by your income.

If you decide to buy a life insurance policy, you should define your needs by deciding how much protection you need and can afford, and what kind of insurance policy to buy. The main purpose of a life insurance policy is to provide survivor benefits for beneficiaries.

Defining Your Needs

• Determine the amount of your income and how it is used to support your family. Your new policy should come as close to making up the difference as you can afford.
• There are several jobs you may perform for your family that are just as important as the salary you provide. Determine how much money it would cost to replace those jobs in addition to your salary.
• For example, do you stay at home and take care of your children? How much would a full-time nanny or day care cost if you weren’t there to care for your children? Are you the primary person in charge of maintaining your home? How much would it cost to replace lawn care and someone to handle household repairs?
• There are many other factors to consider as well. Factors such as your marital status, number of dependents, future education costs, current and anticipated family income, and your current assets and debt obligations all play a role in determining the amount of life insurance that is right for you.

There are many more considerations and questions which need to be answered before making a decision to buy life insurance.

Contact us to set up a no-obligation appointment to answer your questions and discuss options.