life insurance

Life insurance is an important tool for protecting your family’s financial well-being in the event of your death.  Life insurance offers many financial benefits to you and your family.  From lump sum, tax-free death benefits paid directly to your loved ones, to cash accumulation, retirement assistance, and long-term care cost benefits as you move through life.  Think of life insurance as a multi-tool of protection for every stage in your life.  This begs the question:  When is the right time for you to buy a life insurance policy?  

The best time to buy life insurance is almost always today

This isn’t a sales pitch.  The truth is that the cost of life insurance increases as we age.  This is due to the fact that as we age, the risk of serious health issues complicates the ability for life insurance carriers to insure us.  At Insurative, we refer to this as ‘The cost of waiting”.  The longer you wait to purchase a life insurance policy, the more expensive and difficult it can be to obtain one.  

Each stage of our lives presents different needs and challenges when it comes to how we safeguard our financial future.  A college graduate embarking on a new career has different needs than a 50-year-old considering retirement.  Fortunately, the life insurance industry has robust offerings for people at nearly every stage of their lives.  Let’s take a look at different life needs and their possible solutions as we continue our journey through life.

What type of life insurance is right for people in their 20’s and 30’s?

Being young and healthy does not mean a person should wait to buy life insurance.  In fact, there are many factors such as loss of income, mortgages, sudden illness, and even death that impact younger people every day.  Life insurance can help alleviate the financial strain of these challenges.

How would your family survive if something happened to you?

Term life insurance is an excellent starter for many young people.  Term life insurance provides coverage for a specific period of time, typically 10 or 20 years. The policyholder pays an annual premium during this time and if they die during the term then the beneficiary will receive the death benefit amount. 

Term life insurance gives you the peace of mind in knowing that should you die prematurely, your family will receive a significant, tax-free death benefit that helps them cover outstanding debts, mortgages, and life needs.  Term life insurance can be purchased for less than 30 dollars per month for many young people and sometimes as low as 15 dollars per month.

Life insurance for people in their 40’s, 50’s, and 60’s

As we get older, our needs inevitably change.  Our children require tuition for college, our bodies are at greater risk for disease and illness, and our years of earning at our jobs begin to come to a close.  Suddenly, 20-year term life policy we purchased in our 30’s doesn’t reflect our net worth after decades of earning, saving, and investing.  

Permanent life insurance is a type of life insurance that provides financial protection for the insured for their entire lifetime.  Permanent life insurance acts like an investment product that has a cash value and provides protection against inflation.  Let’s look at some of the options in permanent life insurance.

Whole Life Insurance

Whole life insurance offers a safe haven for cash growth.  While the interest and returns on your premiums are conservative compared to other forms of permanent insurance, the returns are consistent throughout the course of the policy.  This allows for slow and steady growth undeterred by inflationary and market pressures.  

Indexed Universal Life Insurance

IUL insurance offers the potential for greater cash accumulation.  This is because the return is mirrored with a market index such as the Dow Jones Industrial Average or the S&P 500.  When the market wins, your return goes up.  These policies also have a floor which means that if the market underperforms you won’t lose money.  This is known as the ‘zero is your hero’ concept.  While not as steady as the more conservative Whole Life growth, IULs have become very popular as vehicles for cash accumulation over time  

When you are ready to make a life insurance decision, let us know how we can help

We believe that everyone is better protected if they have a life insurance policy in place.  At Insurative we believe that  No matter where you are at in your life journey, we are here to help you live your best life.  Contact us at 877-281-1311 or info@insurativeus.com.