Why Life Insurance

Life insurance may be one of the most important insurance products you will ever own. If you are married and/or have children or anyone else in your life that depends on you financially, then life insurance is a must-have to provide financial protection for your loved ones in the case of your untimely death. Some life insurance policies can even provide living benefits that will pay a portion of your death benefit in the case of a catastrophic illness.

Do you have life insurance through your employer? Usually, the amount of life insurance coverage provided by employer sponsored plans is not enough. Also, if you leave your employer, you will lose your life insurance coverage.

Certain stages in your life would precipitate a life insurance purchase including – getting married or divorced, buying a home, having children, starting a business, taking on debt, etc.

There are also business uses for life insurance. Business partners should own a life insurance policy on each other, referred to as a cross-purchase buy/sell life policy. This would protect the business and allow the surviving business partner to buy out the spouse of the now deceased partner.

Two main types of life insurance include

Term Life Insurance:

Provides a level death benefit and a level premium for a stated period of time, usually 10, 15, 20, 25, or 30 years. Term life insurance is a popular choice for those looking for a specific death benefit for a specific period of time. This type is a good option for young families.

Permanent Life Insurance:

Provides not only a death benefit but also gives lifelong protection and the ability to accumulate cash value in the form of an annuity often on a tax deferred basis. This gives you the ability to borrow or take a loan against the value of the cash that has accumulated within the policy. The policy will remain in force as long as the premiums are being paid. Permanent life insurance policies include Whole Life, Universal Life, Indexed Universal Life, and Final Expense (Burial) Insurance. Some of these options have a Long-Term Care Rider option providing protection should you need long-term care.

For a free no obligation life insurance quote and to find out which type of life insurance policy is right for you, call or email today! 603-244-0016 or monique@mtminsurancegroup.com