Summerlin Benefits Consulting Q&AAnswer
Oct 15, 2024 - 09:38 AM
When buying life insurance, consider these three key factors:
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Coverage Needs: Assess the amount of coverage required to support your family’s financial needs, such as income replacement, paying off debts, and covering future expenses like education and mortgage. This helps determine the right policy size to ensure your loved ones are protected.
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Type of Policy: Choose between term life and whole life insurance, depending on your financial goals and budget. Term life is usually more affordable and provides coverage for a specific period, while whole life offers lifelong coverage with a cash value component that can grow over time.
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Premium Costs: Consider the affordability of the policy premiums over time, as life insurance is a long-term commitment. Evaluate how the premiums fit into your current budget and future financial plans to avoid policy lapse due to missed payments.
Working with an advisor can help clarify these aspects, ensuring that you select a policy that aligns with your financial needs and long-term goals.
