Life Insurance is a Piece of Cake
Life insurance can be like a piece of cake. Not only literally to purchase and apply for, but in terms of what kind and how you buy it. Most companies offer group term life insurance at work. This will usually cover you up to one to two times your annual salary. It’s usually very inexpensive and gives you a solid peace of mind that if there is a catastrophic loss at least you had something in place to soften the blow.
Problem is, it’s just the icing. If you should ever leave that company, you lose that icing. So you wouldn’t just ask for some icing for dessert at a restaurant, you would want the cake as well. This is why it’s important to consider owning a personal life insurance policy.
Your choices for the cake are varied. You can either own temporary or “term” life insurance, or you can consider a more permanent approach with whole life or universal life. Sometimes, even a combination of the two is recommended. If you’re trying to keep your costs down, but get the maximum amount of coverage available, then term life insurance is the way to go.
Term is temporary, only for a certain period of time. But this can be useful when your risk has a time limit on it as well. Sometimes it makes sense to own multiple term policies to cover the different time frames of risk you’re solving for. So if you have a 20 year mortgage, you might want to own a policy just to cover you for a 20 year term period. You might consider a 10 year term policy, to cover yourself during your children’s college years. This approach helps to make sure that if you pass away, they would have the money to pay off student loans.
When you’re solving for a long term need, then permanent is the way to go. It may be as simple as wanting final expense insurance to help your estate to pay for your funeral costs. These policies will last your whole life to make sure they’re there for this specific purpose.
So when you're ordering dessert in a restaurant next time, think about how silly it would be to just order the icing and not the cake!
About the author: Mark Yurkovic has been in the life insurance business for over 12 years, and holds CLTC, LUTCF, and CES designations. He enjoys building remote control boats, and playing instruments including the piano, guitar, banjo, and mandolin. Mark would love to discuss life insurance options and work towards finding the best policy fit for your family. You can contact Mark at 1-800-651-1953 or MYurkovic@Pivot.com