You love your spouse and want to protect them with the right kind of life insurance coverage. But what kind is the right kind? I can walk you through the steps that help you pick the best and most affordable way to insure your love. Don't let another day go by without making sure he or she is protected!
Step 1: How long do you need coverage?
Less than 10 years?
Term life insurance might be right for you. It's affordable, and you have a range of terms to choose from. One year, five years, ten years...it's up to you and your budget. It's basic coverage with no frills, but it provides the protection many couples are looking for.
More than 10 years?
You might want to shop for a longer term, such as 20 or 30 years. These still offer very affordable rates that won't put a hole in your budget. You may also want to consider lifetime coverage, which locks in one rate for the rest of your life. It costs a little more up front, but it could be worth it to know the death benefit is guaranteed, no matter when you pass away.
Step 2: Are you interested in cash value you can withdraw or borrow against?
Stick with term life insurance. You won't be paying for features you don't want or need.
Take a look at your budget. Buying cash value policies requires a little extra money each month, so you need to be sure your budget is flexible. To reap the full benefit of cash value policies, you need to let them mature. You can't do this if you let the policy lapse a few months when you can't afford the premium.
Step 3: Do you have a flexible budget?
Permanent life insurance may be right for you. There are two main kinds to choose from—one with fixed premiums (your payments are always the same), and one that offers adjustable premiums. You can pay more when you have the cash, and less when you don't. Give me a call and we can figure out which type works best for your needs and budget. The right choice will depend on whether you prefer security (guaranteed death benefit + guaranteed cash value) or a little risk with chance for higher gains (good investments earn you more cash value, while poor ones can reduce both your cash value and death benefit).
Worried about the budget?
Your first priority should be protecting your spouse and family. If your budget is tight, I'd recommend sticking with term life insurance. It allows you to buy the most coverage for the least amount of money. You can always upgrade to a whole policy later. If this is something you're interested in, let me know. Right now, just think about making your spouse financially secure if something happens to you.