No one wants to admit that they could die unexpectedly. But the last thing you want is to be unprepared by not having the proper life insurance policy in place should disaster strike. Adler Insurance brings you these wonderful tips on Life Insurance.
There are two types of life insurance.
1.Term Life Insurance
2.Whole Life Insurance
The difference between whole and term is that whole is a lifelong policy with an added investment component to it, where you can build up cash tax-free. However, the built-in fees, commissions and surrender charges if you cancel the policy take such a significant chunk out of your investment that most personal-finance experts agree there are better places to invest your money. With term life insurance, in exchange for fixed premiums that you pay monthly, you are covered for a set number of years and only receive death benefits.
While some life insurance agents aim to guide you toward whole life insurance over term life insurance, term makes sense for some people. Term coverage is the appropriate coverage for most individuals, as their needs are for a certain term of years while their other assets accumulate, such as retirement savings and/or Investment portfolios.
There are a few select circumstances where you might be better off with whole life insurance. For example, if you have children who are handicapped and will be financially dependent on you their whole lives, you may want to consider the permanent coverage.
Americans struggling with their finances in today's downtrodden economy may think they can save money by skimping on life insurance. Approximately 30 percent of U.S. households have no life insurance coverage and among households with children under 18, over 11 million have no coverage.
For parents who still have children living at home, not having a life insurance policy could put their kids at risk if something were to happen to them. In the event that a parent die, a life insurance policy can provide a safety net for the children to live off of. So you purchase a term insurance policy to cover your spouse or your kids, but then what? Once the child is grown, most people can let the policy expire.
If you are looking to purchase a life insurance policy, or have questions about where to begin, please contact Adler Insurance 928-710-1455 or visit our website at http://www.AdlerLifeHealth.com
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