by Sean Ryan on Feb 13, 2017
Ah, marriage. It’s the time of life when we not only marry our love, but also join in holy matrimony our belongings, checking accounts and chores lists.
It’s also the time to think seriously about covering ourselves with life insurance for our spouse’s possible future benefit.
When’s the last time you reviewed your insurance options with your spouse, to make sure you’re getting the best coverage at the right price?
Did you know that the younger you are when you apply for insurance, the lower the premiums? And, if your family plan includes children, it’s best to purchase a policy that will keep your family covered until they’re college graduates.
What are the primary two live insurance options? We’re glad you asked. First, there’s “term” life insurance. Some insurance experts describe life insurance as “renting a safety net,” and “term” life insurance fits well within that category. With term life insurance, the owner pays a fixed premium toward a concrete payoff over specific time, typically 5, 10 or 25 years. If the policyholder dies during this period, the insurance company pays the promised amount. Alternatively, when the policy reaches its deadline or expiration, the coverage ends and a new policy must be secured to continue coverage.
Generally, term life insurance is more cost effective for younger families, and is most often secured by people in their 20s, 30s and 40s.
A second variation of life insurance is called “cash-value” life insurance. With cash-value life insurance, the policyholder pays the premium for the rest of his or her life, unless they decide to cash it in and receive the cash value as a lump sum. The cash value of the policy is different from the policies face amount, however: Face amount is the amount of money that will be paid at the death or policy maturity, while cash value is the amount available if the policyholder surrenders a policy before its maturity or his or her death.
Cash-value, or whole life insurance, is also known as permanent insurance because it’s good for an indefinite period of time. Three types of cash value insurance include whole life, universal life, and variable life. Call us at Ryan Insurance & Financial to learn more about them at 386-738-2000.
Just as we love our spouses by sharing our lives, we show our love by giving them additional financial security by purchasing life insurance. It’s must-have coverage for a show-love marriage.