Life insurance is one of the most important financial decisions you can make, yet many people don’t fully understand its importance or the different types of policies available. In this blog, we’ll break down the basics of life insurance and help you understand what to consider when purchasing a policy.
There are primarily two types of life insurance: Term Life Insurance and Whole Life Insurance. Term life provides coverage for a specific period, such as 10, 20, or 30 years. It’s typically more affordable and is ideal for people who want coverage during their working years, such as parents raising children or individuals paying off a mortgage. On the other hand, whole life insurance provides lifelong coverage, and also builds cash value over time that can be borrowed against or used in retirement planning. Whole life policies are often more expensive but offer long-term benefits.
When choosing the right coverage amount, it’s important to consider factors such as your income, debts, and future financial needs for your family. A good rule of thumb is to ensure your coverage is enough to replace your income and pay off any debts, while also covering future costs like your children’s education or your spouse’s retirement.
At James A. Flynn Insurance, we understand that life insurance is a big decision, and we are here to help you navigate the various options and find the policy that works best for your situation. Our goal is to provide you with peace of mind, knowing that your loved ones will be financially secure, no matter what happens.