I find there is a lot of confusion around life insurance. It seems most people have a term policy with their auto and home insurance, but they aren’t sure how long it lasts. All they know is that they have some sort of discount on their home and auto. What people don’t realize is life insurance through their home and auto carrier can cost up to twice the amount that a different carrier that specializes in life insurance can offer. Many times the agent that sells them this policy, doesn’t work with life insurance much, and isn’t very knowledgeable about the different products. They’re likely pitching the cheapest term policy as some type of add on to the other policies they’re selling.
When I meet with people I like to go over three basic life insurance policies:
- Term life insurance – which lasts typically 10, 20, or 30 years. This is great for covering a debt such as a mortgage or student loan. It even includes an endorsement in which you can get all the premiums you put into the policy paid back at the end of the term!
- Guaranteed universal policy – this policy lasts until a certain age, such as 90, 95, or 100. It is great for people who want a policy that will not run out, and are trying to keep the costs down.
- Whole life is a policy – lasts until you are 121, so it of course never runs out. The great benefit here is the cash value that is associated with it. With dividends you can get a nice return on your investment, making it a good tool for retirement or even a child’s college fund.
Because everyone has a different situation, I tailor my advice to each client making sure they find policy that best fits their needs. If you would like to know more about my services or a quote, please contact me at firstname.lastname@example.org.