Nov
6
2008
Life insurance is important – what type depends on needs
Author: Byron UdellLife insurance is a must-have for any individual looking to get married and start a family. The obligation to provide for your family and children is one that should be taken seriously and obtaining life insurance is an integral part of that obligation.
For younger individuals, the option that I would recommend is term life insurance. A major benefit of a policy is that it is an inexpensive option. It will protect you and your family without breaking the bank.
A permanent life insurance policy, such as a whole or universal policy, is a good choice if you’re looking to maximize your pension option or pay estate taxes. Keep in mind these tend to be expensive.
My favorite line is the best type is the type that is in force when you die. Whether you’re 30 or 70 if you can’t afford a policy and you let it lapse, then you didn’t buy the right type of coverage.
November 18th, 2008 at 3:17 am
By all means term insurance is the best type of policy for most people, who need the coverage until their children grow up, they pay off their mortgage, or they retire and start receiving a pension with survivor’s benefits. But consider cash value life insurance only if you need the coverage for more than 30 years. Otherwise, you could generally find better places to invest your money, as the fees and insurance costs are tending to gobble up a lot of your potential returns.