Life insurance, whether it’s term-based or permanent, is one thing you may want to take out in anticipation of future emergencies. While some offers may seem like steals, Ginger Applegarth of MSN Money recommends a little bit of caution:
“… the wrong kind of life insurance can do more damage to your financial plans than just about any other financial product today. So, the first and most important decision you must make when buying life insurance is: term, permanent or a combination of both?
Term life policies offer death benefits only, so if you die, you win (so to speak). If you live past the length of the policy, you (or, more specifically, your family members) get no money back.
Permanent life policies offer death benefits and a "savings account" (also called "cash value") so that if you live, you get back at least some of, and often much more than, the amount you spent on your premium. You get this money back either by cashing in the policy or by borrowing against it.”
The dilemma of picking a “term or perm” life insurance may nag at Brandon, FL residents. Approximately 5.3% of the area’s 109,000-strong population are over 65 years old; anyone can tell you at that late stage that you never know when you’ll need life insurance, even if you’ve done well over the years. If you are eager to help your loved ones while there’s still time, a trusted Brandon insurance agency such as Romero Insurance & Financial Services is prepared to address your needs.
Applegarth suggests evaluating the duration you intend to see a life insurance policy in effect before taking one out. Term policies are good if you intend to take them out over ten years, but some insurers offer terms of between one to five years. Considerations are also acceptable when you want to upgrade a term life policy into a permanent one.
Permanent life insurance policies will be amenable for at least 20 years. Their base model, the whole-life policy, is designed to have minimum cash values and benefits but are scalable based on the dividends.
An assessment of needs for the money also suffices when you discuss them with your insurance agent. The security guaranteed by the policy will be in effect as long as the premiums are paid on time.
A life insurer like Romero Insurance may offer other options to help your coverage, such as car insurance in Brandon, FL. Take note that Florida auto insurance policies require a minimum $10,000 each for personal injury protection or property damage liabilities.
(Source: Term or permanent life insurance?, MSN Money, March 16, 2011)