President, Lane Independent Agency, Southern California
Wow. Where should I start? Well let's first look at the two major choices. Term or Whole Life. With term, you are basically renting insurance. You have a death benefit during the term of your policy, so long as you pay. You are gambling whether you will die during that period. If you are lucky to live longer, they you get nothing. Not the best of deals that way, but it does give initially cheap protection for a growing family. With Whole Life Insurance, however, you are getting a lifetime financial tool. Whole Life keeps growing and increasing in value and in death benefit. While you are living, you can use Whole Life to take money out and pay for college, pay towards a new home or even a new car, or any emergency. You do not have to cancel Whole Life, you can simply take some money out of it, while continuing to allow it to grow, as though the funds were still in the Whole Life Policy. The premium will NEVER change, although you death benefit can growth an enormous amount. Your family is protect, and you never have to worry about being without life insurance with Whole Life. Gary Lane, Registered Representative, New York Life, 949 797 2424. Thank you.
Gary provided great information about the different type's of Life Insurance.
I would like to provide you with an answer that is a bit more philosophical.
Life Insurance provides a benefit, referred to as a death benefit, which pays out to your beneficiary upon your death or rather the insured's death. The whole idea behind Life Insurance is to provide Financial Security. Whether this is for a spouse, to replace lost income, to pay for outstanding debt or perhaps to pay off a business partner so your family does not have to worry about your business if you own it.
Financial Security provides peace of mind for your loved ones.
Financial Security provides protection from creditors who might have a legitimate reason to go after your estate.
Financial Security provides monies to pay any taxes that might be due, i.e. estate taxes otherwise known as the death tax.
Life insurance is usually purchased for the benefit of someone else. E.g. So that your spouse and children can lead relatively normal lives without having to move, take second jobs, forego college to work, etc. In that respect, life insurance gives you the satisfaction of knowing you are caring for those you brought into your life, even after your death. It gives them a feeling of gratitude and respect for you. It allows you to relax a little and not have the worry upon your shoulders about what would happen to them after you die.
Some life insurance can also benefit you financially. E.g. You could purchase cash value life insurance that provides supplemental income during retirement. You could get life insurance on your key employees so that you are not left in a lurch if they should pass. You could take out life insurance on someone who owes you money, or whom you wish to buy out if they should die.
There are many types of life insurance and many ways it can benefit you.
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I would like to provide you with an answer that is a bit more philosophical.
Life Insurance provides a benefit, referred to as a death benefit, which pays out to your beneficiary upon your death or rather the insured's death. The whole idea behind Life Insurance is to provide Financial Security. Whether this is for a spouse, to replace lost income, to pay for outstanding debt or perhaps to pay off a business partner so your family does not have to worry about your business if you own it.
Financial Security provides peace of mind for your loved ones.
Financial Security provides protection from creditors who might have a legitimate reason to go after your estate.
Financial Security provides monies to pay any taxes that might be due, i.e. estate taxes otherwise known as the death tax.
Some life insurance can also benefit you financially. E.g. You could purchase cash value life insurance that provides supplemental income during retirement. You could get life insurance on your key employees so that you are not left in a lurch if they should pass. You could take out life insurance on someone who owes you money, or whom you wish to buy out if they should die.
There are many types of life insurance and many ways it can benefit you.