Continuing on from our conversation from yesterday, CT life insurance is an incredibly important investment to make, not just in yourself, but your family as well. You want to make sure that they are financially taken care of if you were to pass away. But there’s a few different types of CT life insurance out there, so it may be a little confusing for you to figure out.
But have no fear, because that’s what today’s blog is all about- CT life insurance and the different forms it comes in. First and foremost, at the most basic form, life insurance is either term or permanent. What’s the difference? Well, term life insurance is just what it sounds like- there is a set term or limited amount of time that the policy will last for. Usually this term ranges from 10 years, to 15 years, to 20 years. So what about permanent life insurance? Well, again, it’s just like it sounds… it’s permanent for the duration of your life.
Now, as you’d probably expect, the term policy is far less expensive than the permanent insurance policy, however the permanent policy comes with certain financial features that may be appealing to you. What’s that, you may ask? Well permanent life insurance accrues a cash value, as well as interest, that you can then borrow against if you need. This is especially beneficial for higher income earners who may max out their 401(k)s or IRAs.
Conversely, term life insurance is often the go-to for times when you’re paying a mortgage or until your children have graduated from college and are fully on their own. If you were to pass away during this term (hopefully not though), then the insurance money would obviously go to your spouse and children in order to maintain the mortgage and/or college payments.
As you can see, there are numerous (and very important) benefits of having Ct life insurance, so that begs my next question: what are you waiting for?!