Do I Need Life Insurance?

Life insurance is crucial as it can provide financial security for your loved ones when you’re no longer around. Understanding the types of life insurance policies is vital and can help you decide on the best coverage. The right policy can help ensure the financial stability of your family and loved ones for years to come.

What Is Life Insurance?

Life insurance is coverage that works like most insurance policies. You agree to pay an insurance premium to your provider, and in return, your beneficiaries receive a designated amount of money, often called a death benefit, if you pass away. The selected death benefit is a factor that impacts premium costs along with several others, such as your age, health history and family medical history.

Understanding the Different Types

Two of the most commonly selected coverage options are term and whole life policies. Understanding the differences between the two policies is crucial and can help you decide on the right coverage for your situation.

Term life insurance is coverage bought for a limited time, often between 10 and 30 years. It has no cash value; it is only designed to pay out to your beneficiaries if you die during the term. Once your policy ends, your beneficiaries are no longer entitled to the death benefit. As a result, term life is often cheaper than whole life insurance.

Whole life insurance is permanent coverage designed to last your entire life. Premiums generally remain the same for the duration of the policy, and, if you pay your premiums, the death benefit is almost always guaranteed. Additionally, whole life insurance typically accrues a cash value per a policy’s terms. As a result of its features, whole life insurance is often more expensive than term life insurance.

Selecting the right life insurance policy can be challenging. The McDonald Insurance Group agents can help you learn more about choosing a life insurance policy that fits the needs of you and your loved ones.

Do I Need Life Insurance?

Life insurance is not required by law, but the right policy can help ensure the financial stability of your loved ones. Essential life expenses such as bills, tuition and groceries can be costly. A life insurance death benefit can assist in covering such costs when you are no longer around to do so.

Learn More

If you live near Littleton, Colorado, the experienced McDonald Insurance Group agents can help you learn about the basic types of life insurance.

Call one of our agents today at 303-957-1742 for more information.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.