As parents, you understand the importance of financial security for your family. Maybe you worked two jobs after the baby was born in order to make ends meet, and now you’re blessed with more security and the ability to spend more time with your family.
No matter how financially secure you are right now, it’s important that you plan for the future because it’s always possible to hit road bumps and unexpected financial burdens. One way to ensure a secure financial future for your family is by investing in life insurance.
Life insurance can be a tough thing to talk about, especially with your family, but it’s an important discussion to have. Before you sit down and talk with your family about life insurance, make sure you know the different types of life insurance available so you can choose a policy that fits your needs. Check out below to learn about those different types of policies.
Whole Life Insurance
For large families, whole life insurance is a great choice as a financial investment in your family’s future. Whole life insurance pays dividends to the policyholder, meaning your family can rely on a whole life insurance policy for many years as long as you still make payments. You can use those dividends to take family vacations, buy your recent college graduate a car, and so on.
Whole life insurance also never expires, so you’re family will never have to experience a terrible financial burden should one of the policyholders pass away. The cash value of the policy actually increases over time, so you can be confident that your family will be financial secure should anything ever happen. While whole life insurance is a bit more expensive than other types, you’ll still be able to find an affordable rate by comparing rates from http://www.lifeinsurancerates.com.
Term Life Insurance
Term life insurance is a more affordable life insurance solution for people who still want great financial security for their families, albeit at a better price. Term life insurance lasts for a set period of time, typically between ten and thirty years, and expires after that time period has elapsed.
Unlike whole life insurance, it is not an investment strategy and doesn’t pay dividends. However, it will insure that your family will be okay financially should something ever happen to you. Term life insurance also pays out tax-free, meaning your family won’t be forced with a hefty tax bill that they must pay after you’re gone.
Universal Life Insurance
Like whole life insurance, universal life insurance offers permanent coverage. But it differs from a whole life insurance plan in that the policyholder can change the death benefit, size, and timing of the policy’s premium. Because it’s so flexible, it’s a great option for families should they ever encounter an unexpected financial situation that requires a cutback in spending.
The death benefit that your family will receive is tax free, making it easier on them financially. With a universal life insurance policy, you’re getting a guaranteed interest rate, so your policy will never fall beneath a certain cash value. It’s a great, flexible life insurance option that gives your family great security.
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