Understanding common misconceptions about life insurance is an important step in determining the type and amounts of insurance you need to protect your family or others you care about from financial hardship.
Even if You're Single, Life Insurance Can Be Important
An important question you must ask yourself is, "will my death cause a substantial financial loss for anyone?" By buying life insurance now you can accomplish two things: guarantee payment of any existing bills/funeral expenses and lock in your premium at your current age. If you should marry and start a family, your life insurance plan can already be in place.
You Don't Control Life Insurance Provided by Your Employer
In an effort to cut operating expenses, many employers are reducing employee benefits. If you leave the company, you can't transfer your group policy. You should take advantage of employer benefits, but it is a good idea to purchase your own life insurance while you are in good health. If you should develop health problems, an individual life insurance policy may be hard to come by.
Term Life Insurance May Not Always Be the Best Buy for You
Term insurance is written for specific period of time, such as 10, 20 or 30 years. At the end of this term, the policy will terminate (unless you have the option to renew). If you can renew, the premium is likely to increase, sometimes significantly. Many people reach the point where their term policy gets so expensive they can no longer afford it. Term insurance is great to fill a temporary need, but if you want a guarantee that the funds will be available on the day you die, permanent life insurance may be a better option for you.
Permanent life insurance is initially more expensive than term. Many people with a tight budget buy term with the intention of converting to permanent insurance in the future. However, as long as premiums are paid, neither the coverage nor the premium in a permanent life insurance policy will ever change. Permanent insurance offers the guarantee that coverage will be in force the day you die.
In order to establish a sound life insurance program, you must have defined goals. What do you want your program to accomplish? Your independent agent can provide a needs analysis that will show you the type and amount of insurance you need to accomplish your goals.
Contact us today and we will help you better understand life insurance. We are committed to helping you protect your family, your estate and your future with an insurance program that best fits your own unique needs.
Protect your family. Call Mitchell & Mitchell Insurance Agency at (415) 883-2525 for more information on Los Angeles life insurance.