With there being so many different life insurance companies in Memphis & so many different types of policies no wonder why deciding on a policy isn’t exactly the easiest task. We want to make your job easier by giving you a few of our best pointers on how to choose among the many types of life insurance.
If you want to leave cash for your loved ones when you pass away, then permanent life insurance is for you.
- Those covering a parent’s assisted living bills
- Your spouse is a full time mom or dad so you want to make sure your family is guaranteed adequate income
Consider permanent life insurance if you’re interested in accumulating savings that will grow on a tax deferred basis: With certain permanent life options you will accumulate a source of borrowed funds that can be used for various purposes. It can be used to pay for your premium to keep your life insurance active if there comes a time that you are unable to pay it. These funds can also be used for really anything else that you desire to invest in. You don’t even have to worry if your credit will be an issue with borrowing because the money that would be paid out to your loved ones in the event of your death (death benefit) is collateral for the loan.
Permanent life insurance premiums are generally higher than term premiums, but they will remain the same throughout your life, while term premiums can potentially increase upon every renewal.
Buy term insurance if you only need coverage temporarily for a period of time like:
- Covering living expenses for your children while they are growing up
- While paying off a mortgage
- While paying for your child’s college tuition
If your budget is limited at the moment, then a term life insurance option will most likely be best for you.
If your financial situation is somewhat shaky, but you expect it to take a turn for the better you should look into convertible term policies: These policies allow you to convert your term policy to a permanent one without additional medical exams or your premium going up.
If you know you need a large amount of coverage, but are limited on funds, then term life insurance will be the best choice for you: This could be the case for families with young children that are still adjusting to their new added expenses. Term life insurance will fit in your budget better, compared to permanent life insurance, but you can’t forget that if you are still alive at the end of the term your coverage stops on the expiration date unless you renew your policy or purchase another one. Your best bet is to aim to start up a permanent life policy when your budget allows for one.
There are a number of different life insurance companies in Memphis so if you still feel overwhelmed let us help you with any additional questions or concerns. Be sure to get free expert insurance advice before you shop for your next policy. It pays to be prepared so check out our blog and take advantage of the several topics we cover so you won’t have to think twice about your next move.