“Tick tock.” It’s not just the name of your favorite app to waste time on. It’s the sound of life passing you by. Most of us are so busy doing something, whether it’s owning a successful business, clocking in long hours at our full-time jobs, driving three different kiddos to three different schools, keeping track of what is virtual and not virtual, and maybe even finding some time for yourself in there. But besides all that stuff, it’s important that you set aside time to plan for your future. We know that scrolling TikTok for hours on end sounds a lot more fun than planning for a life insurance policy, but life happens so quickly, and the worst thing you can do is put this off until it’s too late. National Life Insurance Day is May 2nd, so before next week pops up too quickly, be prepared with our helpful breakdown of life insurances.
There are two main types of life insurance that you’ll hear most insurance companies talk about: term life insurance, and whole life insurance. Luckily, the names themselves help us identify pretty easily what means what, but we’ll break it down for you to make it even easier to understand.
Term Life Insurance: This type of insurance is set up so that you make regular, fixed payments for a specific amount of time. The upside to this type of insurance is that you’ve covered, and some coverage is better than no coverage. The downside to this type of insurance is that it only pays out if you pass away during the period in which your policy is specified.
Whole Life Insurance: This type of insurance is set up so that you make regular payments as well, but there is no set period coverage, meaning you just keep paying until you pass away, and then the policy will pay out to your beneficiaries. The downside to this coverage is that premiums can end up being higher, and the upside is that you don’t lose pay-out after a certain period of time, so you won’t have to worry about losing anything when a term dries up.
One type you might not hear about so often is universal life insurance. This type is similar to whole life insurance, but you have more flexibility to take out money early (before you die), which is nice for a back-up nest egg, but doing this can affect long term payout significantly.
No matter what type of policy you decide is best for you at this time in your life, SOGO agents are ready and waiting to assist you with securing that policy. We realize these conversations may be overwhelming, but we can help sort through the confusing details and loads of information available to you. Don’t attempt to sit down at the kitchen table alone to figure out one of life’s most important decisions. Our office is open so that you can come in person, or we are happy to schedule a virtual meeting if you prefer to remain socially-distant during this time. However we see you next, we’ll greet you like family that you can count on.
In case you missed it: Check out “Tax Returns Have Arrived: You’re Rich!” and see if you’re living your life to the fullest but not completely protected. High net worth insurance can cover your precious, hard-earned assets if life happens.
