Life Insurance Considerations
Have you considered how your family would afford to pay the bills and maintain the standard of life you enjoy now if you or a spouse were to unexpectedly pass away? Whether you are a primary earner or provide services in the home such as childcare and housekeeping, your contributions are vital to the financial health of your household.
Life insurance protects the people you love against financial hardship in the event of an insured individual’s passing. Some policies can also provide living benefits and an opportunity to build wealth over time. Here at GOEBEL Insurance & Financial, we offer several different types of life insurance, most of which can be defined by one of two categories: term life and permanent life.
Term Life Insurance
Term life insurance is coverage designated for a specific amount of time – usually between 10 and 30 years. It provides a death benefit only – usually for a large sum at a low, affordable price. Families often choose term life insurance to protect dependents and provide income replacement should a caregiver pass away. Term policies are available for up to $1 million or more, money of which can be used for things like:
- Income replacement
- Final expenses
- Debt payoff
- A spouse’s retirement
- A child’s college tuition
- Charitable contributions
- And more
Permanent Life Insurance
Permanent life insurance does not expire, and most policies build cash value over time. Some policy-holders borrow against the cash value for things like college tuition or unexpected medical bills.
Generally, the younger and healthier you are when you purchase your permanent life insurance policy, the more affordable your premiums will be for the coverage you want. With standard whole-life permanent coverage, the price you pay on day one is the price you pay your entire life, so long as you do not cancel your coverage or default on your premiums.
Universal Permanent Life
Universal life insurance is a type of permanent life insurance that provides flexibility of premiums. This coverage usually offers an investment component designed to facilitate cash value growth. Over time, you can opt to use the cash growth from your premiums to cover the cost of your death benefit premiums. You can also choose to simply cash out your policy for its value in the event you no longer need it and would prefer the cash instead.
How Much Life Insurance Do You Need?
The type and amount of life insurance you need can be influenced by many different factors. We here at GOEBEL Insurance & Financial can help you assess your coverage needs based on variables like:
- The number of dependents you have (or expect to have in the future)
- The number of years left until retirement
- The number of years until your dependents become financially independent
- Expenses you are saving for (i.e. college tuition, retirement)
- The amount of debt you have
- Your current and future estimated income
- And more
Why Shop Independent?
When you are shopping for life insurance, you are making important choices that could affect the future outcome of your family’s finances. Instead of deciding alone, always work with an independent agent who understands how to assess your needs, address your concerns, and come up with solutions that fit your household.
At GOEBEL Insurance & Financial, we have the flexibility of shopping and comparing life insurance policies from multiple Wisconsin carriers. This makes it easy to decide which company will offer the most competitive rates on the coverage you need.