Life is the one thing we all have in common and the single most important thing we should protect. Purchasing life insurance is a foundational part of financial planning since it safeguards loved ones and preserves their financial security in the event of an unexpected loss. However, life insurance can be much more than just a death benefit. Here at Giuffre Insurance, we can show you how affordable it can be to not only purchase life insurance but to also use it as a means of building wealth for the future.
Should You Buy Life Insurance?
You probably need life insurance – even if you have no financial dependents. The coverage is generally recommended for people who have families, plan to start a family in the future, have outstanding debts, or who have a financial interest in one or more businesses. Generally, the sooner you purchase your coverage, the better. Not only are you not guaranteed tomorrow, but rates also tend to rise according to risk – something that typically increases with age. Furthermore, it is possible that delaying an application for coverage could affect your life insurance eligibility altogether if you develop a health condition that disqualifies you from coverage.
Employer Coverage vs. Private Coverage
An employer-sponsored life insurance plan can offer added protection in the event of a loss, but we recommend purchasing a private insurance policy to serve as your primary coverage. Work-based coverage typically offers too little coverage to suit your needs. In addition, employer coverage is usually contingent upon your continued employment. If you lose your job or pursue a different career, you could lose your employer life insurance. Depending on your age and health at the time of your job change, you could find that the cost of private coverage has increased or perhaps is not available at all.
Types of Life Insurance Coverage
There is no one-size-fits-all solution for life insurance. Instead, you will choose between multiple coverage types and amounts to determine which coverage suits your needs and goals both now and in the future. Although policies can vary in the benefits offered, most can be categorized as one of two types of coverage: term or permanent. At Giuffre Insurance, we can help you better understand the advantages of each type and develop a coverage solution that works for you.
Term Life Insurance
Many people purchase term life insurance for its high benefits and correspondingly low premiums. This coverage is strictly death benefit protection and is only effective for a specified period of time – usually between 10 and 30 years. That is usually enough to see a dependent child through college or protect a spouse against loss of income until you reach retirement.
If you earn income for your household or otherwise take care of jobs within the home, such as childcare, that would otherwise require a surviving partner to outsource at a cost; you may need term life insurance. This coverage can take care of years of hired help in the home or even replace the income of a lost wage earner, allowing your family to continue living according to your current financial standards without taking on debt, selling your home, or experiencing other financial burdens.
Term life insurance may be right for you if:
- You have debts or a mortgage
- You have dependents who rely on you for income
- You own a business
- You wish to leave a financial legacy for a loved one or charity
- You wish to fund a major expense, such as a college education or spouse’s retirement
- You need budget-friendly premiums with high death benefits
Whole Life Insurance
Whole life insurance is different from term life insurance in that the coverage never expires so long as you continue paying your premiums. Generally, the coverage remains intact regardless of changes to your health, and the rates remain the same even as you age. That means the younger and healthier you are when you purchase your whole life insurance policy, the less money you are likely to pay for policy premiums.
Although the cost of whole life insurance is typically higher than the same amount of term life coverage, it comes with added benefits. For example, most whole life insurance policies develop a cash value over time. In many cases, policy-holders are allowed to borrow against the cash value of their policies or even cash-in their policies for their value.
Whole life insurance may be right for you if:
- You want the security of fixed premiums for life
- You want coverage that lasts for life
- You want ‘living benefits’ and cash value for your coverage
Universal Life Insurance
Like whole life, universal life is another type of permanent life insurance. However, it tends to afford greater flexibility for policy-owners – something that is advantageous as financial needs change during the various stages of life. With universal life insurance, the policy accumulates cash value over time, with some of your premiums paying for your death benefit and a portion of them being invested for a return. As the cash value of your policy grows, you can use it to help cover your premiums during times of financial difficulty when you might otherwise have trouble paying for your coverage.
Universal life insurance could be right for you if:
- You want rate flexibility
- You want coverage that never expires
Affordable Wisconsin Life Insurance
Perhaps you want to lock in low rates on life-long coverage while you are young and the premiums are more affordable. Maybe you recently got married or had children, increasing your need for the high-limit coverage and budget-friendly rates offered by a term life policy. Whatever stage of life you may be in, we here at Giuffre Insurance can help you navigate your coverage needs with term or permanent life insurance from one of Wisconsin’s leading carriers.