Do you hear that sound? It’s the sound of a reality check, brought to you by Life Insurance Awareness Month. We’re ringing a bell that most people want to block out because the thought of death or leaving a family behind can daunt some. Don’t worry- it’s not all doom and gloom. We’re here to take out the “scary” aspect of life insurance, and to break it down a little more simply. Life insurance is simply an investment in your family’s future. Getting the right policy nailed down can mean the difference between keeping a home, or losing it. It can mean securing a comfortable future for your spouse and children in the tragic event you’re called to leave the earth earlier than you had hoped. It means tossing out a lifesaver of sorts for your family in the deep ocean called life.
The different types of Life Insurance
All types of life insurance fall under two categories: term life insurance and permanent life insurance. The titles make it easy for us to remember the difference. Term life insurance policies last for a specific and set number of years. If you don’t die within the time frame outlined in your policy, it expires and you receive no payout – short and sweet. Permanent life insurance lasts your entire life and often entails a cash value that you can either borrow against or withdraw during your lifetime if needed. Let’s dive in a little deeper, shall we?
Term Life Insurance
Studies show that 54% of Americans have some type of life insurance policy, and the term life insurance option is the more popular choice. Why is this? Pro: This type of life insurance policy is often one of the cheaper options, giving you coverage during a certain time period. Con: When that time period runs out, you’ve outlived your policy and your family won’t receive any cash. Some folks opt to have an annual policy if they have short-term debts, so it’s still a viable and good option for most. Don’t rule out term life insurance until you’ve gone through the details. Just because it’s often a less expensive policy doesn’t mean it wouldn’t suit your needs.
Permanent Life
Obviously, permanent life insurance is…well, permanent, which works out if you plan to have a long and happy life. Pro: Have you ever heard of “whole life insurance?” It’s a type of permanent life insurance that lasts your entire life and has a guaranteed return on the cash value you built up in your lifetime, so you can’t “outlive” your policy. Con: Of course, with the guaranteed payout comes a higher premium, so be sure to hash out the details of this type of policy before you sign up.
Our agents are happy to explain the differences between these types of policies and will help you move forward with the plan that best suits your needs and wishes. You can’t be sure about when or how you might die, but you can be sure that you and your loved ones are covered if it were to happen during your policy length.
In case you missed it: “4 Labor Day Quarantine Plans to Safely Enjoy the Holiday” has some sweet summer chill-out ideas for you. Just because Labor Day passed doesn’t mean you can’t throw a party for one any weekend in these last warm summer days. While you’re chilling out, consider how SOGO Insurance can help protect your assets. Give us a call, and tell us about what you did for Labor Day.
