Do You Know Your Family's Needs When It Come To Life?
Do You Know Your Family's Needs When It Come To Life
?
Our family need life insurance but what kind?
George and Betty Smith are a young couple living on a farm in the south, they've been married for five happy years, they decided they wanted to start a family a couple of months ago, now Betty is expecting and is due in 3 months. They both worked and had health and life insurance through their jobs, but with the addition on the way they had to start doing and thinking about things a little differently.
They thought about what kind of financial security they will need raising children, they know with a new addition coming into the family and plans for another in a few years, they had to look at the possibility of one of them unexpectedly passing away and leaving the other raising the family. They couldn't make up their minds whether they need term or whole life because they didn't know the difference between life insurance, so the Smiths decided to get in contact with a number of insurance companies until they found one and set up an appointment with one of their agent for next Monday to talk about life insurance for their family.
That Monday the agent arrived, hello Mr. & Mrs. Smith my name is Bob Anderson with Secure Life Insurance, after the introduction they all sit down at the table, they told Bob about them starting a family and they were interested in acquiring additional life insurance, but couldn't determine what kind of life they will need and how much they could afford. Bob listen to the Smith's story and concerns about the raising a family and didn't know the difference between term and whole life insurance and what their needs were, so the Bob went on to explain the difference to them.
Mr. & Mrs. Smith! Well I will explain term to you first because it's the simplest of the two, term is for coverage of the insured for a limited period of time anywhere from 5 years to 30 years with no cash value, and it pays out if the insured should pass away within the period stated in the contract, and if nothing happens to the insured you have to renew the policy or convert it into whole life at an attain age at the end of the contract, when you have to renew term insurance the premiums also increase.
Bob begin explain some of the benefits that they might want to consider of term to the Smith, it's a good bargain for the money while you young and finance is not that great, if something unexpectedly happens to a key member while you young it could cover the mortgage, it could cover debt you might have, or have money set aside for college education for the kids. Then as you get older if nothing unexpectedly happen before your term contract ends you can think about getting whole life.
Now Mr. & Mrs. Smith as your family grows their needs are going to change and you might want to look at getting some permanent insurance coverage, so I would recommend whole life, whole life is a permanent life insurance plan that builds up cash value, it cost more because has some investment potential that's included, the premiums stay the same as long as they are paid, there's no time limit on the insured, it guarantee to pay whenever the time of death of the policyholder as long it is within the guidelines of the insurance company, after the policy accumulate cash value you have the option to borrow money from the plan, if you don't borrow money against it you have a paid up option to pay it off and never have to pay anymore premiums on it ever.
Just like the Smiths there is a difference in premiums between insurance companies, no insurance agent can't recommend the best life insurance to purchase for you are your family whether it's term or whole life is better until you and the agent get together to explain your situation, then and only then he can find out what your needs are. If you are confuse and don't know the difference between term and whole life insurance contact a professional and find out, it doesn't cost you anything for information.
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