Is it time to take stock of your life insurance?

By Higginbotham on September 04 , 2015

Looking at clock

Have you heard? September is Life Insurance Awareness Month! Sponsored by nonprofit organization, Life Happens, the event encourages Americans to take stock of their life insurance needs.

Fortunately, the Life Happens website makes life insurance assessment easy, with a convenient life insurance calculator, and tons of great articles and resources. The star of the hit TV show “Black-ish,” Anthony Anderson, is the event spokesperson. On the website, he shares his story and explains why he bought his first life insurance policy at age 18.

What’s your life insurance story?

Most Americans have car and home insurance. However, when it comes to life insurance, some people cringe. Life insurance pays a death benefit, and who wants to think about death? But here’s the truth: Life insurance isn’t about death, it’s about helping loved ones live on, without financial devastation.

No matter what you do for a living, how far along you are in your career, or how grown your family is, life insurance can serve as an important financial tool. One of the most low-cost forms of life insurance is term life insurance. If you don’t yet have a life insurance policy, or if you need a second policy to supplement the life insurance you get through work, term life insurance may be the answer.

Below are four reasons to consider term life insurance:

1. Affordability: Term life insurance is what is known as “pure” insurance, which means it's efficient. Efficient because you are paying only for insurance – not cash accumulation features such as loan provisions and investment choices. Since you are only paying for pure insurance, the cost of term life insurance is substantially less than a whole life policy with the same amount of coverage.

2. Peace of mind: It costs a lot to live today. Big mortgages, car payments, student loans and the cost of raising a family are huge financial burdens on young married couples. In many households, both spouses work to provide the lifestyle that they desire. Term life insurance can assure both husband and wife that in the event of the loss of one spouse, the other will be able to maintain their lifestyle with the money provided by the insurance benefit.

3. Flexibility: Term life insurance can be purchased for a specified time period. You can purchase coverage for 10, 15, 20, 25, or even 30 years, making it easy to fit your specific needs. In addition you can choose the dollar amount of coverage needed, making it easier to adjust payments for any budget. And, unlike some of the more complicated insurance policies, term life insurance premiums will remain the same for the full length of the policy.

5. Savings options: Some whole life or cash value policies advertise that they provide insurance and a savings account in one. These policies typically cost a lot more than term life policies. With term life, you pay a constant low premium and the savings (over what you would have paid for a cash value policy) can be placed into a separate retirement account of your choice such as a 401(k) or an IRA.

With its simplicity and low cost, term life insurance can be the key to a secure financial future for yourself and your loved ones. For life insurance information and quotes, contact Higginbotham’s individual life and health department. And, if you’re an employer who would like to add life insurance to your group benefits line-up on a sponsored or voluntary basis, we can help with that too!

Tags: Individual Life & Health


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