There are many misconceptions about individual life insurance. For example, one of those misconceptions is that life insurance should be purchased later in life. Another misconception is that life insurance is only necessary for those with a family to support. However, even if you are young and single, life insurance is an important component of your financial plan. It can provide benefits not only after your death, but while you are still alive, as well.
Term Life vs. Permanent Life
Term life insurance policies are in effect only for a set amount of time or until you reach a certain age. These policies are generally less expensive than permanent life policies. When the term is up, you may no longer reap any death benefits.
On the other hand, permanent life insurance provides lifelong death benefits and can consist of a combination of universal life, whole life, and long-term care coverage. Whether you live until 40 or 90, whole life insurance will provide financial compensation to your family upon your passing. However, whole life insurance policies also carry a cash value while you’re still living; the more you pay, the more money you can access if you ever need it. Whole life insurance is considered a personal asset.
The Right Time to Buy
Waiting until you have a family to support or until you have reached your golden years to buy life insurance isn’t always the best strategy. The cost of life insurance is based on age and health, so it is typically less expensive to purchase a policy when you’re younger. Some plans are flexible in allowing you to add additional coverage later on down the road. Unlike with health insurance, you can be denied life insurance coverage based on pre-existing conditions such as diabetes or cancer, so don’t wait until you are ill to buy life insurance.
The The SIG Insurance Agencies have years of industry experience and understand the nuances of term and whole life insurance. We work closely with our clients to assess your needs and to find a policy that is ideal for both you and your bank account. Contact us at 866-FIND-SIG.