There is more to life insurance than what you get through your employer. It is important to know the difference options available to you. This definition guide is just a tiny description of how policies work.
I recommend everyone have at least enough life insurance to cover your bills for 6-18 months + burial expenses!
Definitions of Life Insurance:
Employer Issued Term Life – 100% tied to your being employed with the company.
Individual Term Life – 5 – 30 year policy. Also, what you get offered through an employer.
Whole Life – Coverage you up to age 99 – 100. You can borrow money from most of these policies.
Children’s Policies – Most common carrier is Gerber, who sends new and expecting parents advertisements. However, there are many options available, if Gerber does not fit your needs. Your child can borrow money from some of these policies once they turn 18.
The first four are the ones everyone knows. There is also:
- Final Expense – Smaller policies designed only to cover burial/cremation (Up to $25,000).
- Guaranteed Issue – These can be whole or term policies. They are issued regardless of your health circumstances.
- Mortgage Protection – Typically a term policy. Sometimes this policy decreases in value over time, because it is *only* meant to pay off your mortgage if you or your partner pass away.
- Universal Life – Whole life policies which build cash value faster by investing your funds. However, these policies can be set up to never go below a certain amount of money. Therefore, unlike a 401K plan, they are less likely to leave you in a bind. You can borrow money from most of these policies.
There are a few other types of polices that include annuities and/or more risk to your funds. However, since I am not a licensed financial advisor, I am not going to speak on those at this time.
I can sit down with you and your bills. We can find out how much you need to keep your family covered if something happens to you. Contact me today!
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Text: 281-305-9201
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