Let’s be honest – life insurance isn’t that exciting to most people and when you consider that you also have to face the thought of your own death it becomes even less of a priority. With a higher number of millennials facing student loan debt in numbers that have never been seen before, it becomes even more important for that generation to protect their loved ones from financial ruin by purchasing life insurance. Having life insurance becomes even more important when you are married because it is likely that your financial obligations have increased, but even if you are single someone is still responsible for paying off any of your debts at your passing which could leave a loved one vulnerable to financial distress.
Put simply, life insurance offers a tax-free payment to the beneficiary if the insured dies while the policy is effective. While the beneficiaries can use the money however they want, the payout is intended to be used for paying debt, replacing the insured person’s income, funeral expenses, and providing the recipient with enough money that they can withstand the loss of their loved one’s income. When deciding how much life insurance to purchase, it is important to consider whether you are the primary income earner in the household, what debt you have including mortgage or student loans, and what you are trying to save for in the future like a college fund for your kids.
Once that’s done, you can choose between term life and whole life insurance. Term life, as the name implies, only provides coverage for a certain number of years while whole life is in force so long as the policy is current. At Jim Boyce Insurance in Matthews, NC we can help you navigate your life insurance options and help you find the perfect policy for your needs.