The two main types of life insurance are ‘term’ and ‘permanent’.
Life insurance is a sensitive topic for a lot of people. Part of this is due to superstition. Some people feel like they are inviting bad things to happen if they prepare for them. This could not be further from the truth. The bottom line is that everyone will eventually pass, and having a life insurance policy in place is a gift to those left behind. Whether it is a policy from your job or a personal policy that you have to cover your final expenses, having life insurance is wise. But it can also be hard to know what you really need. Read on for several important questions to ask your broker about life insurance before settling on a policy.
What Are The Types?
The two main types of life insurance are term and permanent. Term is less expensive, but also only covers you for a set number of years, such as 10, 20, or 30. If you die within that time, the benefits will pay out to your next of kin. Permanent life insurance is is coverage for your entire life, as long as you pay your premiums., and this type has two sub-types: whole life or universal. Whole Life policy premiums don’t rise and you can borrow against them as they build cash value. Universal life insurance is a more flexible plan, allowing for change within parameters set up by your insuring company.
How Much Do I Need And How Much Will It Cost?
How much coverage you need will depend on what you want it to cover. If you have longterm financial obligations (like a car or a mortgage), you might want your policy to cover that. If you want to make sure your kids can go to college, you need enough to cover the kids and the projected cost of an education. The cost to you will depend on the type of policy and amount of coverage you choose. A broker is a great resource for figuring out exactly what you need.
Is It Best To Get It Through Work?
Finally, this is one of the most common questions people have. Life insurance is typically offered at jobs as part of a benefits package. It is an easy way to enroll without needing to undergo a medical exam. Typically there is a cap on how much of a payout you can have (tied in some way to your salary) and these policies are also tied to your employment and/or your employer. Basically, if you are thinking about changing jobs or retiring, you’ll need additional outside coverage anyway, and the bottom line is that it is best to have your own coverage, not tied to a job, since your job can always change and you may lose the coverage you paid into.
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Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.