Back to the Basics

Let’s talk about the basics of Life Insurance. You might have questions about life insurance and that is normal. Not everyone knows all the ins and outs of the types of life insurance so I want to talk about the basics of Life Insurance. I should probably first say that all life insurance is bought to cover a need. We will discuss the different needs that each type of life insurance covers. There are two basic types of life insurance, Term and Permanent.

Today let’s talk about the Term life insurance. As the name states it is life insurance for a certain amount of time. Generally it is bought from 10-30 year terms. As I said before all life insurance is bought to cover a need. The goal of most people is the American Dream, so we work hard in order to buy a house and cars in pursuit of that dream. As we are pursuing the American dream we obtain debt and responsibilities. These debts and responsibilities in addition to loss income are the needs that Term life insurance covers. When you were single with no mortgage, no spouse  and no children there wasn’t a real need for life insurance. But as you start new chapters in your life you should look at your life insurance to make sure it fits with your needs. If you are married with no children, could your spouse pay off the mortgage with you out of the picture? If you have children how will they receive the proper care and education with out you around? These are all hard things to think about but it is your responsibility to make sure your family is taken care of if you are removed from the picture before you are planning on it. When you pay off the mortgage, the kids are out of the house and through college and the need has gone away so can the Term life insurance. Like I said before, life insurance is bought to cover a need, when the need is no longer present then neither should the term life insurance.

I hope this has helped answer some questions about Term life insurance. Later we will tackle Permanent life insurance. If you have any questions about how much insurance or which type you need give us a call.

Comments are closed.