Life Insurance Doesn't Have to Be Scary

by Kevin Smith Author

Life is constantly changing. We grow older, we get married, we create families, and we suffer losses. Many people purchase insurance policies only when starting a family or starting a new job. In many cases, the insurances we carry throughout our lives are not enough to cover us or loved ones should something devastating happen.

The fact of the matter is, many events in life warrant a review of your current insurance policies; getting married, getting divorced, having children, starting a business, providing for an elderly parent, refinancing a home, receiving an inheritance, and planning for retirement are just some examples of when it is absolutely necessary to review your insurance and adjust as needed. Whether you are anticipating significant life changes, or you simply want to make sure you have sufficient insurance, contact your local life insurance broker in California for advice on how to make sure you and your loved ones are protected.

Different Life Insurance Terms

You may have heard that there is more than one type of life insurance, but what does that mean exactly? There are three primary insurance terms: term life insurance, whole life insurance, and universal life insurance.

Term life insurance is designed to protect you for a specific length of time, or term. This is generally a great place to start if you’ve never had insurance before. Benefits of term life insurance are that it is less expensive than other coverages and comes with fixed premiums. If later down the road you decide you need permanent coverage, term products may be converted to permanent products.

Whole life insurance is also known as permanent life insurance. It remains in effect for the duration of your life as long as you pay the premiums accordingly. Whole life insurance policies also build value over time and can be used as a form of investment.

Finally, universal life insurance is a lasting product that has flexible premiums, an unbundled pricing structure, and face amounts. Similar to whole life insurance, universal life insurance builds cash value over time, but it also earns interest at a certain rate that is guaranteed not to fall below a specified percentage.

Which Insurance Do You Need?

Insurance exists for the purpose of protecting us in the event of a loss. You have car insurance to protect yourself and others in case of a car accident. You have homeowners’ insurance to protect your home and belongings in case of property damage. If you haven’t already, you should add life insurance to that list. If something should happen to you, your life insurance policy will kick in and protect your family, pay off debts and other expenses so your loved ones don’t have to, and may also give you the ability to leave an inheritance to your children. Everyone’s insurance needs are different, but luckily, any life insurance broker in California can help you make those decisions and set you and your family up for financial security and peace of mind.