Life Insurance in the Rio Grande Valley
Is Life Insurance a Necessity?
As the age-old question goes… “Why do I need Life Insurance?”.
Most people don’t realize that life insurance is not for those who have passed on, but rather, for those who are left behind.
What do we mean by that?
It’s simple! Life insurance helps the ones you love after you have passed on. Many times we don’t realize the pressure and stress we leave behind in the form of debts or quality of life especially if your family depended on YOU for their quality of life or if your spouse depended on you to help support the household. Many things change when a loved one passes on, too numerous to outline, but I’m sure you can imagine the types of decisions and changes that take place, just think about it!
There are several types of policies available for you to select from. These policies fall into several categories but we will focus on two types, short term and permanent.
You’ve probably seen the commercials for policies that cost about $10 per month for a set number of years. These are known as “Term” policies and are usually purchased for specific terms and are generally in high value such as $250,00 and up, but can vary less if needed. These policies are good if you have a young family that depends on you or even a business owner with debts that need to be covered in case he/she passes on.
What makes these policies attractive is the amount of coverage for the price. The downside of these policies is that since they are for a specific period of time, they do cancel out if not used by the maturity date at which time you may purchase a new policy, however, your premium may change as you are now just a little bit older.
There are also long term or “permanent” policies that can be purchased. The two most common types of long term policies are whole life and universal life.
Within these policies are cash value, which makes them very attractive, and some will use them as a type of savings but not normally recommended. Coverage amounts will depend on your needs and current situation as well as what you feel your needs will be in the future.
Life Insurance Policies
A short term policy with a specific set number of years of coverage. There is no “cash” value with this policy. Benefits include high levels of coverage and small monthly premiums.
Considered a permanent policy and matures at age 100. Some will use this type of policy as a savings as it retains some cash value.
Considered by many a permanent policy but is dependent on premiums to maintain active. Is interest bearing depending on market rates.