INDUSTRY INSIGHT
INSURANCE
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Is Life Insurance Right for You? By Patrick Geary
Ahh … spring is in the air! Spring itself is a cause for celebration in our region. There are also many family celebrations that happen this time of year: graduations, weddings, a baby, a new home, a new vehicle, and many more. Believe it or not, this is also the perfect time to think about insurance coverage. Yes, it is the perfect time to look at home and auto coverage( I can certainly help you with that), but let’ s take some time to talk about coverage that many times gets overlooked: life insurance coverage.
There are generally two types of life insurance policies, term life and whole life. A very common question that many people ask me is,“ What are the differences between a term life insurance policy and whole life insurance policy?” Let me try to simplify it for you. n FEATURES OF WHOLE LIFE INSURANCE
• Covers you for life.
• Provides death benefits as well as a cash value accumulation that builds during the life of the policy.
• You must typically qualify with a health examination.
• Takes 12 to 15 years to build up a decent cash value.
• Can be a good choice for estate planning purposes.
• Cash value is based on how much the return on investment is worth.
• A portion of the cash value can be withdrawn or borrowed during the life of the policy.
• Initially has more expensive premiums than term life insurance, but can potentially save you money over the life of the policy if in force for a considerable number of years. n FEATURES OF TERM LIFE INSURANCE
• Provides death benefits only.
• Provides benefits only if you die while the policy is in effect.
• Easiest and most affordable life insurance policy to buy.
• Purchased for a specific amount of time, such as five, 10, 15, or 30 years, known as the term.
• Becomes more expensive as you age, especially after age 50.
• The term must be renewed if you want coverage to be extended beyond the term length.
• Can be used as temporary additional coverage with a whole life policy.
• Can be converted to a whole life policy.
When choosing between whole life and term life insurance, there are many variables to take into consideration. I can help you evaluate each of these and decide if term life or whole life is the best option for you. n FACTORS IN CHOOSING WHOLE OR TERM LIFE
• Your age
• Your overall health
• Financial needs of your family
• Plans for funeral and death expenses
• Age of your children
• Long-term health expenses in the event of a serious illness
• Your mortgage and current debts
• When you plan to retire and any retirement plans you already have in place
• Future needs of your family, including children’ s college tuition
• Whether you want to donate life insurance proceeds to charity
• Your feelings on paying into a term policy and potentially never receiving any of that value back
I find that many people ask themselves,“ Do I really NEED life insurance?” I respond with a reminder that life insurance isn’ t about you and it probably isn’ t about today. If you have a mortgage, plan to send your kids to college, or just have long-term financial goals, I can help you find a life policy to fit your unique needs. Let’ s sit down together and have a conversation. Call 814.315.2700 or email pgeary @ farmersagent. com to schedule your no-obligation appointment.
This Industry Insight was written by Patrick Geary. Patrick Geary is the owner of Cornerstone Wealth Advisory and Insurance Services, LLC., located in Erie, PA. Our clients come first. Everyone is treated with respect, integrity, and honesty. Through a long-term commitment to these principles, we strive to be known as a company that builds solid relationships. Mr. Geary is licensed in PA, NY, and OH to provide individual and commercial insurance coverage. For a free quote call 814-315-2700 or email pgeary @ farmersagent. com.
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