TERM VS. PERM - The Debate Goes On

People often cringe at the thought of not being around anymore, i.e. death.  What should be more scary is what happens to your spouse, children, and estate WHEN you don't come through the doors one day. There are many ways to take care of your loved ones from the grave. Life insurance is a great way to provide large sums of money without "on the cheap."  

The growing debate is whether to buy permanent (whole or universal) life insurance or temporary (term) insurance and invest the difference of the two.  Here's my two cents: 

The younger you are, the wiser it is to purchase permanent life insurance.  Those with young children should also purchase a policy for their child not for the death benefit (although you never know) but for the living benefit and financial growth.  That's another topic altogether.  

My suggestion is to have both types of life insurance, but to not "over-insure" yourself.  Think about it like this, would you want your loved ones to have to pay off a car and home if you owe on both when you expire?  

A 30 year term policy is a cheap way of covering both your home and auto(s) should you die unexpectedly.  If you own your  home outright, but have a loan on your vehicle, a 5 year term policy makes sense should anything happen to you during your loan period. 

Younger people who may actually take a moment to read this, you're getting older each day and the cost of insuring your life gets more and more expensive each year.  #thinkonthat

ASK THE RIGHT QUESTIONS TO MAKE THE BEST DECISION.

LIFE INSURANCE ON THE JOB: My two or three cents

IS YOUR FAMILY PROTECTED?

At least five to ten times per day, I have a conversation (albeit usually very brief) with someone regarding life insurance and the potential need their family would have in the event they suddenly don't make it home for dinner. 

I totally understand that most people cringe at the thought that one day they will no longer live and breathe as they currently do, but one thing is for certain we all get a "certain" amount of time here and that time can't be figured out by any algorithm I've ever been privy to.  

The name of the game is making sure your family can continue their same lifestyle should either of the main bread winners make an early, unexpected exit from this life.  Having life insurance at work is a GREAT start! You usually get a pretty good price (if not free) on the coverage and usually one to two times your yearly salary.  

Sounds like a sweet deal on the surface, but the moment you leave that position you no longer have coverage and if you stayed three to five years, you are now that much older when it comes time to rate you for your next life insurance plan. 

How do you combat this issue?  Make sure you have permanent life insurance outside of your employer and make sure you begin that coverage as early as you can to take advantage of the best possible monthly premiums.  Also, be sure you speak to an insurance agent about your options for coverage: term, whole, universal, term vs. whole, whole vs. universal, etc.