All life in the universe will come to an end, but when that end is, or how it will come about, is the relativity that lies in the universal. At the human level, the family and personal connections we develop are things that we have the innate desire to protect.
In the modern age, life insurance does that, protecting a policy holder’s beneficiaries when his or her life comes to its inevitable end. With the benefits of the two main types, whole and life, which type of life insurance is right for you?
Here are some broad scenarios and which type of life insurance is best for that situation.
Term Life Insurance
- Someone young – in their youth, people start considering their long-term prospects for a reason; their health is good and their life is vibrant. Whole life insurance something that young people might not be able to afford. The lower premiums of term life insurance are more manageable as they try to make their way in the world, and they have plenty of time to invest in whole life insurance should they so choose.
- Someone transitioning their insurance – oftentimes people find themselves in transition in their life, which could be one between permanent states or a temporary state between permanent states. In that case, term life insurance has their families or other beneficiaries covered during that period, and would expire at a point when they can reevaluate where they stand in their finances. Retirement is a popular constant state that people reevaluate their insurance, and many term life insurance policies expire upon the policy holder’s retirement.
Whole Life Insurance
- Someone in a Stable Situation – “settling down” is the term dabbled about near the beginning of someone’s career: getting a stable job, getting married, getting a permanent living situation. No matter what age someone is, whole life insurance is a terrific option for a stable situation considering the consistent premiums and the non-expiring coverage. It is also a great time to start the cash value to start accumulating.
- Someone saving for retirement – in this day in age, more people are putting more emphasis on saving for retirement no matter what social class they are in. The whole life insurance’s dividend option is a great way to invest in one’s future. The tax-protected annual gains in cash value provides an extra trust fund that can be utilized to facilitate retirement saving.
To find out more on what life insurance coverage is right for you, contact one of Paradiso Insurance’s knowledgeable agents, or call (860) 684-5270 today!