Why should you have life insurance? Well, there are many reasons, but according to the Idaho Department of Insurance, the simple reason is to protect against dying too soon. No, life insurance won’t prevent your death, but it will financially protect your loved ones in the event of it. Since life insurance avoids probate and is paid directly to the beneficiary, it is a terrific way to provide funding for your family.
Life insurance is available in two broad forms. The first is Term Insurance. Term Insurance is basically temporary life insurance designed to cover the life of the insured for a specific period of years or “term”. The positive of Term Life Insurance is that it is an inexpensive form of coverage. This allows you to buy more insurance at a time when you may need it most. Oftentimes, a 20 or 30 year term policy will cover the insured over the period of their mortgage. This assures at least your home will be paid for.
The other form of life insurance is Whole Life. Sometimes referred to as Permanent Insurance, Whole Life covers the insured for as long as premiums are paid. While Whole Life will be more expensive on a per-thousand basis than term insurance, it builds cash value as time progresses. Policy owners can tap into this cash value in emergencies or to take advantage of opportunities.
You should be aware that with either Term Life Insurance or Whole Life Insurance, premiums will generally be lower the younger you are when you purchase it. Your premiums may also be affected by your health and lifestyle choices like tobacco use. To get the best premiums, it can pay to compare. That is why choosing an independent insurance agency is valuable. An independent insurance agency can compare different policies from differing companies for you. Insurance Designers is an independent agency serving Idaho and we would be pleased to compare for you. You can get a quote right online or by calling our office. We look forward to assisting you.