For most families, nothing is more important than protecting and providing for the people you love most. That is why there is no better time than now to purchase life insurance. Here at Billy Brown Insurance, we know what a relief a life insurance policy can be for a family that is experiencing grief and loss. Not only can it help pay for final expenses, but it can also preserve the legacy of the lost loved one, continuing to provide income and support for years to come.
Types of Life Insurance
Although there are several types of life insurance, most policies can be categorized as either term life or permanent life insurance. Our agency can help you better understand the differences between these types of coverage and which one may be right for you.
Term Life Insurance
Term life insurance is coverage that pays benefits if the insured individual passes away during a specific term limit – usually between 10 and 30 years. These policies are generally designed to provide income replacement and are often used to insure individuals who have financial dependents. Term life insurance tends to be very affordable and comes with very high coverage limits. For a small premium, it may be possible to insure your family for as much as $1 million or more should you pass away during your working years.
Term life insurance can be used to:
- Pay off debts
- Cover final expenses
- Replace lost income
- Pay for big expenses, such as a child’s college education
- Leave a legacy, such as a charitable contribution
Permanent Life Insurance
Permanent life insurance is coverage that never expires so long as premiums are paid as agreed. This insurance typically comes with lower coverage limits, but it can provide a wealth of other benefits both now and in the future. That is because permanent life coverage can offer consistent and continuous premiums for life. It also builds cash value over time, allowing you to borrow against it or cash it out in times of need.
There are two types of permanent life insurance – whole life and universal life. Whole life insurance offers level premiums that never change or increase. You cannot outlive the coverage, and you can borrow against it as needed while you are still alive. Universal life insurance offers greater flexibility and control of your policy, allowing you to adjust your coverage and the amount you pay for your premiums over time. Like whole life insurance, you can also access the cash value of your universal life policy while you are still alive.
Families often choose permanent life insurance for its versatility. It can be used to:
- Fund an unexpected expense
- Save for the future with tax-free growth
- Pay for final expenses
Do You Need Private Life Insurance?
If you have access to employer life insurance benefits, you may wonder if private life insurance is right for you. While employer protection is a nice bonus, it may not be adequate to fit your long-term needs – particularly if you ever lose your job or change employers. That is because most employer life policies are only valid so long as you are employed. Since premiums increase with age and applicants may no longer qualify for coverage as health deteriorates, waiting to buy coverage could be a big mistake.
Contact an agent here at Billy Brown Insurance for more information about Wisconsin life insurance. We can help you calculate which coverage and how much may be right for you.