Life insurance is among the most difficult and most necessary for a person to purchase. It’s hard to face your own mortality. In attempting to provide for your loved ones after you’re gone, you must face the fact that no one is guaranteed tomorrow.
We understand how difficult this decision can be and are here to help you make the right decision for your family based on your individual circumstances. In addition to offering education about your options, we’re here to help you decide the best type of insurance and amount of coverage for your situation.
Types of Life Insurance Policies
You might be surprised that there is no one life insurance policy that works perfectly for everyone. Your insurance coverage needs are different from those of your neighbor and even many of your coworkers. That’s why it’s so important to work with an independent agent in New Jersey who will walk you through your options so that you can make informed decisions about your life insurance purchase.
Term Life Insurance
For most adults purchasing insurance, this is the great decision to make. Term life policies allow you to lock in your rates for a specified term, typically five to ten years. Once that term ends, the policy ends. You have the option of purchasing another policy at a different price and, potentially, for a different term. Subsequent policies are almost always higher prices and if you’ve had a health scare or developed certain health conditions in the midst of a term you may be turned down for renewal.
The upside for term policies is that during the time when your family relies on your financial contribution most, you’re normally able to purchase coverage at a lower price. As your children get older and begin families of their own and your financial circumstances become more stable; the odds are good that you won’t need as much life insurance coverage to protect your family.
Whole Life Insurance
This policy is outstanding for anyone that can work it into his budget. It is best purchased early in childhood when the rates are low. The beauty is that those low rates are locked in for life – as long as you continue to pay the monthly fee, your rates will never increase.
Even as a young adult the rates may be quite affordable. The younger you begin a whole life policy, the more affordable the policy is. Over time you can borrow against your policy for things like making down payments on a home or paying for some of a child’s education.
Hidden Benefits of Life Insurance
While death and taxes may be the only certainties in life, life insurance can spare your loved ones the pain of watching their inheritance dwindle to zero from inheritance taxes. Most possessions that are left to loved ones as taxed heartily unless they are left in a trust. Death benefits from a life insurance policy, however, are not subject to these taxes. This means your loved ones are getting the full force of the assistance you intended for them.
Johl & Company Can Help You Understand Your Life Insurance Options
The ins and outs of life insurance can be a little bit confusing. Let Johl & Company help you decide the best course of action for life insurance coverage. We’re here for you now and later in life as your circumstances and life insurance needs change once again. A good rule of thumb is to review your policy at least once a year to make sure that your policy continues to be a good match for your needs.