Decisions, Decisions: Term vs. Permanent Life Insurance

November 29, 2013
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choosing a life insurance policyInsurance is everywhere and it seems to be of a growing concern across the country. An even deeper concern is how to get more bang for your buck in this slowly recuperating economy. Most of us have family members that will need to take care of our arrangements when we pass on, but what about those of us who have to worry about our children’s future or our family’s financial interests?

choosing a life insurance policyInsurance is everywhere and it seems to be of a growing concern across the country. An even deeper concern is how to get more bang for your buck in this slowly recuperating economy. Most of us have family members that will need to take care of our arrangements when we pass on, but what about those of us who have to worry about our children’s future or our family’s financial interests? Here are a few of the most aggravating insurance questions answered, and how you can make the best decision for your life insurance needs.

Term

Term life insurance is one of the most affordable insurance plans on the market. While the prices don’t seem to be nearly as intimidating as its permanent life insurance counterpart, it does have a few drawbacks. When it comes to the short term, you’ll have to pick a time frame that better suits your needs and capabilities. For those who work in a high-risk environment, term can be the light in the darkness by offering a ten year coverage plan at an affordable rate.

This plan can be utilized to give a set amount of money to the family or beneficiary of the deceased. If you do go with this type of insurance plan, be sure that all of your ducks are in a row, and that you can cover your expense as long as it’s under $100,000. If your plan expires and you haven’t used it, you will not get any of that money back and you run the risk of a higher premium than you previously paid.

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Permanent

Permanent life insurance is one of those big leaps of financial faith. If you require more coverage than the average $100,000 or below usually granted by term insurance, or you want to maintain a plan for the long haul just in case, then you should look into the permanent life insurance option. Permanent life insurance might be a little heavier in the premium side, but it is one of those that will make life just a little bit easier for your loved ones once you pass. Also, many people think of a permanent life insurance plan as a bit of an added savings account since a lot of the excess premium goes into an account that can be accessed while you’re still breathing.

Once you’ve secured your permanent life insurance policy, do not expect to see a rise in your premiums. You’ll be locked in and ready to go once you’ve filled out all of the paperwork. Also, with permanent life insurance, you don’t have to fret so much about your family and friends being left in the wake of your demise, and you’ll be able to take care of your children’s needs even beyond the grave.

When it comes to choosing whether or not you should choose permanent over term, there are a few things to ask yourself: What does my financial stability look like? Will I be able to cover my expenses and my children’s expenses? Will my family be able to cover my expenses? Can I afford the premium at this time? And how long do I intend to keep my current plan? Once you’ve answered these questions, then you’ll better be able to decide if you want the temporary life insurance policy or if you want to stick in it for the long haul and get your money’s worth. The choice is up to you. If you have any questions about coverage or payment after a loved one passes, check out http://mydefence.ca/ for some advice on these issues. Being left in the dark is the hardest part. 

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