The concept of life insurance is something that few people like to discuss. Planning for a time when you are no longer available to provide for your family might be difficult, but it is one of the smartest investments you could make. September is Life Insurance Month, and in recognition OceanPoint would like to highlight some fundamental facts about life insurance.
One of the most common misconceptions regarding life insurance is the cost. Many are dissuaded from purchasing life insurance because they feel it is too expensive. However, there are a variety of life insurance options available to fit your specific needs and budget. Some of the basics are:
Term life – This is the most inexpensive form of insurance because there are no cash values or dividends. Term policies are purchased for a specific period of time such as 10, 15, 20 or 30 years. If an insured loved one passes away during that time period, a beneficiary is paid the dollar value of the policy.
Whole life – As the name suggests, a whole life policy is protection for someone’s entire life. Premiums, which insurance companies invest, stay the same during the life of the policy. There are cash values, and some companies pay policyholders’ dividends. The cost is higher, but it is considered more effective for estate planning.
Universal life – A valuable coverage and living benefit, universal life policy allows for more flexibility and is more of an investment vehicle, however, increased contributions may be necessary if the investment interest assumptions are not met.
Variable life – A variable policy offers more investment options than a universal life policy, with the policyholder having the ability to select the investment options.
In short, life insurance protects those who depend on you for financial support. If the unexpected should happen, life insurance provides your dependents with income so they may continue to live comfortably. It can also cover medical, legal, and funeral costs as well.
At OceanPoint Insurance, we are committed to the total protection of you and your loved ones. For a complimentary review of your life insurance options, please call us today at 401.847.5200.