Life insurance is a financial tool that provides a lump sum payment to your loved ones in the event of your untimely death. Although most don’t want to discuss the sensitive subject, purchasing life insurance can be essential in securing your family’s financial future. In this blog, we will explore why and when you should purchase life insurance and the different types of life insurance policies available.

Why You Should Purchase Life Insurance

There are many reasons why you should purchase life insurance. Here are a few:

To protect your loved ones: If you are the primary breadwinner in your family, life insurance can provide a safety net for your loved ones if you pass away. The payout can be used to cover expenses like mortgage payments, education costs, and other living expenses.

To cover your debts: If you have outstanding debts, such as a mortgage or student loans, life insurance can help pay them off so your loved ones are not burdened.

To cover funeral expenses: Funerals can be expensive, and the last thing you want is for your family to pay for them out of pocket. Life insurance can help cover these costs.

To provide an inheritance: If you don’t have any assets to pass on to your loved ones, life insurance can provide an inheritance.

When You Should Purchase Life Insurance

There are a few different times in your life when you should consider purchasing life insurance:

When you get married: If you get married, it’s important to consider purchasing life insurance. This is especially true if you plan on having children.

When you have children: If you have children, life insurance is a must. This will ensure that they are taken care of financially if something happens to you.

When you buy a house: If you buy a house, you should consider purchasing life insurance to ensure that your mortgage can be paid off if something happens to you.

When you start a business: If you start a business, life insurance can provide financial protection for your family if something happens to you.

Different Types of Life Insurance

There are several different types of life insurance policies available. Here are the most common:

Term Life Insurance: Term life insurance provides coverage for a specific time, usually between 10 and 30 years. If you pass away during the term, your beneficiaries receive a payout. If you outlive the term, the policy expires, and you don’t receive any money.

Whole Life Insurance: Whole life insurance provides coverage for your entire life, as long as you continue to pay the premiums. It also has a savings component, which builds cash value over time.

Universal Life Insurance: Universal life insurance is similar to whole life insurance, but it allows you to adjust your premiums and death benefit over time.

Variable Life Insurance: Variable life insurance is similar to whole life insurance, but it allows you to invest the cash value component in stocks, bonds, or mutual funds.

At Power Risk Management, we are here to make sure you family is protected. To discuss what life insurance option is best for you, please contact Tom Klonowski at tmk@powerrisk.net or 815-922-4754.  To learn more about Power, visit www.powerrisk.net.