Life insurance is difficult for many people to talk about, let alone purchase. Unfortunately, it may be one of the most important purchases you’ll ever make on behalf of the loved ones if something should ever happen to you.
Do You Really Need Life Insurance?
The truth is that you cannot possibly know what tomorrow holds. That’s what insurance is all about – planning for the unpredictability of life. Most families do need life insurance – especially if there are children, mortgages, high property taxes, or insufficient retirement funds. Some people simply want to provide an extra level of financial freedom for their families.
Life insurance goes well beyond paying for funeral and burial expenses. It can help a family maintain its current standard of living if the primary breadwinner isn’t available to do so. It provides priceless peace of mind of financial security and stability when it is needed most.
If you sit down and think about it, you insure many things in your life, including your home and automobile, why wouldn’t you insure yourself?
Types of Life Insurance
When it comes to life insurance, there are essentially two types of policies available (as well as some hybrid policies that offer some features of both). They are whole life policies and term life policies.
Whole Life Insurance: The younger you purchase a whole life policy, the more mileage you’ll get for your efforts. This policy builds cash value for as long as you own it, allowing you to borrow against that cash value during lean times along the way.
The beauty of a whole life policy, though, isn’t in the cash value, though that’s a great thing to have, but in the fact that it allows you to lock in that low insurance price, regardless of health, for as long as you own the policy. If you have an existing whole life policy, it is better to continue holding on to that policy as long as possible.
Term Life Insurance: Your term life coverage typically costs less than a whole life policy at younger ages and provides a locked in rate for the term of the policy (typically a few years). Once the policy ends, you must apply for another policy which may have substantially higher rates.
What this means is that you can typically afford the costs of a term life policy while you have children at home and are paying a mortgage – during the years when your family depends on your income. However, the costs become prohibitive as you approach retirement and beyond.
Why Choose Fraser Brothers for Your Life Insurance?
Fraser Brothers has a long history of service to families in Central New Jersey. Since 1903 we have worked hard to earn and remain worthy of your trust. We’ll offer ethical guidance on important decisions about your life insurance and the legacy you leave your family.
Request a quote today for a free life insurance quote and to learn more about how we’ve made getting life insurance simple, easy, quick, and affordable.