Life insurance is a key aspect in your financial planning that secures a future for your loved ones. Covering final expenses, serving as a safety net or inheritance, it provides stability in an ever-changing market. And while 85 percent of consumers agree people need life insurance, only 62 percent have reported actually having it (1). Why is that?
Often at times, life insurance is viewed as expensive and overly complicated. When in fact, it’s a powerful tool that can provide peace of mind in the long-term. A life insurance policy can be entrusted to a variety of benefactors — your family, towards higher education, or even your business. Regardless of the goal, life insurance ensures that your desires are carried out during your most vulnerable stages.
There are three major areas of life insurance: term, universal, and whole life. Term life insurance provides protection for an allotted period of time, spanning anywhere from 10 to 20 years. The premium payment will remain the same during the coverage period. After the period, a policy may offer continued coverage.
On the other hand, whole and universal policies provide lifetime coverage. Universal life insurance is flexible in your ability to raise or lower your premium payment or coverage throughout your lifetime. Whole life insurance policies are typically fixed, but unlike term insurance, has cash value. In this scenario, your policy can act as a savings component and have the ability to accumulate over time.
Life insurance serves a variety of purposes. Policy benefits can be used to pay final expenses such as funeral or cremation costs, medical bills, or a mortgage balance. Additionally, your life insurance policy can be used to cover college expenses, state and federal taxes, supplement inheritance(s), or be contributed to a philanthropic organization. There’s no right or wrong answer — it all comes down to your needs and the way in which you’d like your assets to be organized.
38% of people haven’t purchased life insurance because they're unsure of how much or what type of policy to purchase (2). With so many options out there, it can be overwhelming. That’s where Garner Insurance can help. Our team combines top-tier industry experience with small-town personalization to help you find the perfect fit. Whether it’s your first time looking at policies or you’re looking to update your current one, Garner Insurance ensures your finding top value for your hard-earned dollars.
(1) 2013 Insurance Barometer Study, LIMRA
(2) 2015 Insurance Barometer Study, Life Happens and LIMRA