There is a saying that I’m sure you are all very familiar with. In life, there are only 2 things that are guaranteed, death, and taxes. Even though this phrase was first spoken by Benjamin Franklin back in 1789, it still resonates with us today in the USA. This is something we at Alpine Castle Lake Insurance embrace.
While we can not stop either of these factors from occurring, we can prepare and ready our family in the case of your death. As far as taxes, we llI’m afraid you are stuck with those.
Death and the thought of leaving people you care about in a callous predicament is not something the general population like to dwell on, or even think about for that matter. It leads me to a big question on everyone’s lips…
We all have different stuff happening within our family units. Marriage, having children, supporting a family member/s, mortgage repayments, college fees, vacation expenses. There is always something or someone depending on you. Now imagine if your financial support just suddenly stopped. How would those people you care about keep going? Would their lives be placed at a disadvantage? Would it be detrimental to their future? How would they deal with the emotional trauma as well as the financial?
This is the reason we need life insurance coverage. Not for us, but incase the unforeseen occurs it is to protect the ones we care about. If you live in Idaho Falls Idaho, speaking to one of the Life Insurance experts at Alpine Castle Lake Insurance will alleviate the worry and reassure you that your family will be taken care of should something unforeseen happen to you.
However, once you have jumped in the ring and arranged your life insurance policy, you cannot just set and forget. It is a process that requires fine-tuning when any major life event occurs. A new baby, new grand child, marriage, divorce, change in salary, buying a new house, or a death in the family. These are all events that require your life insurance to be checked and tweaked. Make sure your loved ones do not get left in the dark due to your fear.
The minefield of insurance can seem daunting and the whole idea of talking about death can be too much for some people. We can assure you it is a chat that is best had earlier rather than later. Once you have spoken to one of us you will feel an immediate stress release.
So, what types of life insurance are there, and what is the difference?
Let me break it down very broadly for you. There are two general terms you should familiarise yourself with: Term life insurance and Whole life insurance.
This type of insurance refers to coverage that protects your family for a fixed period. This term is generally between 1 – 20 years. If you obtain a 1-year policy, you may continue to roll it over each year. The idea is to cover your loved ones from financial hardship during times of high financial demand on your income, at times when there is a high dependency upon your salary. Some variables to alter the cost of this policy and the amount of coverage you obtain include your living standard, your marital status, the number of dependents you have, your age, and how much disposable cash you have to pay the premium.
As you can deduct from the name, whole life insurance refers to the coverage you receive for your whole life, or at least while you are paying the premium. The premium consists of a beneficiary element (allocated to your beneficiary post your death) and a cash element that is available to you, the policy holder, sort of like a forced savings plan. This residual element can assist to finance things such as estate tax your family will have to pay, be loaned against, or used as a dividend to yourself after your retirement, therefore it can be wound into your retirement planning strategy.
There are many aspects and intricacies to consider when entering a life insurance plan which has not been covered in this article. Each person’s scenario is different, and we encourage you to speak to our experts at Alpine Castle Lake Insurance today to find out how to best protect your family when you cannot anymore. For an appointment with a colleague call or email us today.