Buying life insurance now provides a financial safety net for your dependents later if you’re not around to take care of them. After you’re gone, your family can use the proceeds to cover funeral costs, mortgage payments, college tuition and other expenses.
There are two main types of life insurance:
Term Life Insurance is the easiest to understand and has the lowest prices. You can get term life insurance quotes online.
Permanent Insurance is more complex and tends to cost more than term, but it offers additional benefits. Whole life is the most well-known and simplest form of permanent life insurance. Other kinds of permanent life insurance include universal, variable and variable universal.
Term life insurance
Term life insurance provides coverage for a certain time period. If you have a term policy and die within the term, your beneficiaries receive the payout. The policy has no other value.
You choose the term when you buy the policy. Common terms are 10, 20 or 30 years. With most policies, the payout, called the death benefit, and the cost, or premium, stay the same throughout the term.
When you shop for term life:
-Choose a term that coincides with the years you’ll be paying the bills and want life insurance coverage in case you die early.
-Buy an amount your family would need if you were no longer there to provide for them. The payout could replace your income and help your family pay for services you perform now, such as child care.
Ideally, your family’s need for life insurance will end around the time the term expires: Your kids will be on their own, you’ll have paid off your house, and you’ll have plenty of money in savings to serve as a financial safety net.
Whole life insurance
Like all permanent life insurance policies, whole life provides lifelong coverage and includes an investment component known as the policy’s cash value. The cash value grows slowly, tax-deferred, meaning you won’t pay taxes on its gains while they’re accumulating.
You can borrow money against the account or surrender the policy for the cash. But if you don’t repay policy loans with interest, you’ll reduce your death benefit, and if you surrender the policy, you’ll no longer have coverage.
Although it’s more complicated than term life insurance, whole life is the most straightforward form of permanent life insurance. Here’s why:
-The premium remains the same for as long as you live
-The death benefit is guaranteed
-The cash value account grows at a guaranteed rate
Some whole life policies can also earn annual dividends, a portion of the insurer’s financial surplus. You can take the dividends in cash, leave them on deposit to earn interest or use them to decrease your premium, repay policy loans or buy additional coverage. Dividends are not guaranteed.
If you want to discuss options about your life insurance, we recommend speaking with an independent insurance agent like George Beach Insurance Services. We work for you the client, and not a particular big company.
There are many insurance products out there that you can benefit from. Some of the most common that people are aware of are health insurance, car insurance, and life insurance. But there are other valuable insurance policies that you may not think about or be aware of. Here are five insurance products that you didn't know you needed.
Genetics is one of the factors that determines how long you are going to live. Although you cannot do anything about your genetics, a healthy lifestyle can help extend your life. On the other hand, there are unhealthy habits that can take years off of your life.
Smoking and Drug Abuse
Smoking can increase the risk of heart disease and cancer. In fact, an estimated 75% of all oral cancers are caused by habits like smoking. Even if you only smoke occasionally, you can still be doing serious harm to your health. If you quit smoking, then you can add 10 years to your life. In addition to smoking regular cigarettes, it's important to understand that other forms of drug abuse can also have long-term consequences on your health and longevity in life. Recovery from addictive drugs like heroin is often a lifelong struggle. Drug abuse is incredibly hard on your body and can even be deadly. If this is something you struggle with, then addressing it now will go a long way toward improving your long-term health.
Drinking Too Much
Small amounts of alcohol are not likely to harm your health. However, if you drink too much, then you can take years off of your life. You should not have more than three alcoholic beverages per day. Alcohol can cause liver problems, heart disease, high blood pressure and obesity.
Sitting Too Much
Studies have shown that sitting for more than three hours per day can take two years off of your life. Even if you exercise regularly, you can still harm your health by sitting too much. One study showed that people who sat for more than 11 hours per day were 40 percent more likely to die within three years.
There are things that you can do to protect your health if you have a sedentary job. You can get a stand-up desk. You also want to make sure that you get up and walk regularly throughout the day.
Even if you do not smoke, drink or sit too much, you can still be harming your health if you are anti-social. Studies have shown that people who have weak social connections are more likely to die prematurely than those who are more social. In fact, one study showed that being lonely can be just as bad for your health as smoking 15 cigarettes per day. Another study showed that elderly people who had strong social connections were 22 percent less likely to die. They also had healthier brains.
Your genetics are not the only thing that influence your lifespan. You can add years to your life by changing your lifestyle. Not smoking and limiting your alcohol consumption will add years to your life. You will also need to make sure that you maintain an active lifestyle. Additionally, it is important to have an active social life.
Remember, you genetics do not control your destiny., You can take active steps to insure that your body will be happy and healthy for years to come. Part of that is having adequate medical care and medical overage. Contact George Beach insurance services today to learn more about our health insurance programs.
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