Do you really need life insurance? I have so many clients ask this question. Is it necessary to get quotes from lots of companies? The answer is yes! Especially, if you want to save money. Not all life insurance is the same. When clients bring up the desire for a policy, we ask questions. We talk about coverage amounts, types of insurance, length of protection, and so on. In addition, we talk about the cost of insurance. Coverage is important to have, but not at the expense of draining your bank accounts!
Reasons for Protection
At Rocky Mountain Financial Solutions, life insurance coverage for clients is important. An unexpected death of a family member has a devastating impact on the financial well being of the surviving family. Life insurance pays a benefit upon the death of the insured. This eases the financial burden. Coverage is purchased for many reasons, below are the most common:
- Income replacement – provide care for the surviving family members.
- Pay final expenses – funeral, burial, etc.
- Debt repayment – pay off personal loans of the insured or the home mortgage .
- Estate planning – minimize estate taxes.
- Business planning – protect the continuation of the business with the loss of a key person or owner.
- Charitable donation – leave a gift to charity.
- Retirement Supplement – permanent insurance in your portfolio is used to supplement your retirement income.
- Gift – pass a gift to a friend or someone you care for.
Types of Coverage
Term insurance provides coverage for a specific number of years. These policies term length range from 1-year to 35-years of coverage. This product is popular due to the high coverage amount for a low cost.
Permanent insurance is coverage designed to last the entire life of the insured. The permanent policy is often associated with estate planning. This product also offers a savings component within the policy. Due to the permanent design, the cost of this policy is higher than that of a term policy.
In conclusion, both types of insurance are used for different situations. RMFS can help navigate the different products. As well as, determine the right amount of coverage. And lastly, choose the best company to buy your policy. Follow this link to speak with an advisor today.