There are 2 major types we recommend at SRS. People tend to over complicate life insurance. There are two basic questions: How much do I need? What is my budget?
Term Life Insurance
Currently, our most common product is Term Life Insurance. These policies are also very inexpensive, but they only are useful for a set number of years, called the term.
This policy is temporary, a product that you rent for number of years. 5, 10, 15, 20, and 30 year terms are common.
For example a $500,000 20 year Term Policy would pay the family $500,000 (tax free) if the insured passed away in the next 20 years. These policies are very useful when we have 20 years of risk. As a personal example: I have 18 years left on my mortgage. Also, I have a son, Eli, who is 5 years old. If I pass away anytime in the next 20 years, my family will receive enough money to pay off my mortgage, and send my son to college.
If you would like to see how much life insurance your family should hold, or how inexpensive term life policies can be, please visit our needs calculator.
Permanent Life Insurance
The last and recommended type of life insurance is Permanent Life Insurance. Permanent policies can last your entire life, and pay out a death benefit, no matter what age you pass away. Permanent policies also include cash value which grows and compounds over the years, with interest and dividends. The cash value will continue to accumulate for as long as you live. Some popular permanent policies are Whole Life and Indexed Universal Life Insurance. These products are used for growth, savings, and guaranteeing a gift to the next generation (legacy gift). These products can be customized based on the client’s age, health, and budget. If you would like to learn more about permanent policies, please contact us today!
If you would like to see how much life insurance your family should hold, please visit our Life Insurance Needs Calculator.