Life Insurance is one of the most important and difficult topics to discuss when it comes to planning for both you and your family’s future. Whether you’re looking to purchase a new or evaluate an existing life insurance policy, it is important to know the basics.
Life insurance is a contract between an insurance company and a customer which outlines each party’s obligation to one another. The customer agrees to pay a specified amount, called a “premium”, at regular intervals, and in return the company agrees to pay a lump sum to the designated beneficiary once the term of insurance is over (generally at the policy owner’s time of death).
Getting married, buying a home, and bringing a child into the world are three major life events that make the life insurance conversation increasingly important and urgent to have. What type do you need? How much do you buy? Do you purchase just one policy, or more? Who do you name as your beneficiary? Where should you buy it?
These are the types of questions you need to ask because life insurance is as important as it is difficult to discuss when planning for retirement. It can be complex and thus overwhelming to you, but when we go through it together you’ll understand how it works and why it might be a good fit for your portfolio. Whatever your current situation may be, just don’t make the mistake of not looking into buying life insurance or examining your current policy.