No one really wants to talk about Life Insurance, but it is a subject that you can’t avoid. Life insurance is important. Everybody needs life insurance based on their own individual situation. It basically comes down to how much money do the people who are financially dependent on you need.
Getting life insurance doesn’t have to be difficult. Bolder Insurance is here to answer common questions about life insurance so you can make informed decisions for your own personal situation. Bolder Insurance is an independent agency, which means we have access to dozens of different companies that offer a multitude of life insurance policies so we can find what is best suited for your personal situation. Call Bolder Insurance to get started on your personalized Life Insurance quote 303-449-9595
What are the different types of Life Insurance
There are basically two types of life insurance: term life and permanent life insurance.
Term Life Insurance
Term life insurance is the type of life insurance most people are familiar with. It pays a cash benefit to your beneficiaries if you were to pass away during the term. The term is how long the policy lasts. Typical terms are 10, 20 or even 30 years. The benefits of term life policy include:
Affordability: Unlike a permanent life insurance policy, Term life insurance only offers a death benefit, which is the cash paid to your beneficiaries if you pass away during the term. Initially, this makes it the most economical type of life insurance policy.
Flexibility: Based on how long you want coverage, you choose how long you want your life insurance coverage to last based on your individual needs. Many people pick a milestone like when your mortgage is paid off, or when they retire for when to stop coverage. Term Life Insurance can last as little as a year to as long as 30 years or more. Typical terms are 10, 20 and even 30 years.
Simplicity: Getting term life insurance typically involves just two decisions: how much coverage you want and how long you want it to last. At Bolder Insurance, one of our advisors can help you choose a coverage amount and term.
Permanent Life Insurance
Permanent life insurance has several features that term life insurance does not. The benefits of permanent life insurance include:
Lifetime Coverage: Permanent life insurance covers you for life, as long as you pay your premiums. Many people find it reassuring knowing they will always having life insurance coverage in place.
Cash Value: A benefit of permanent life insurance is that they can build cash value over time, which accumulates on a tax-deferred basis just like assets in most retirement and tuition savings plans. Permanent insurance is often referred to as cash-value insurance because these types of policies can build cash value over time, as well as provide a death benefit to your beneficiaries.
Many Options available: There are different kinds of permanent life insurance. Whole life (or Ordinary Life), Variable Life, Universal Life and Variable Universal life are some of the types of permanent life insurance policies. Some offer a guaranteed rate of return while others let you choose a mix of investments for a variable rate of return. Some require you to pay fixed premiums while others have flexible premiums allowing you to vary the amount based on your financial circumstances. Others policies even let you skip premium payments and increase or decrease your coverage level over time.
This is just a brief introduction to all the possibilities with a Life Insurance policy. The question of who needs life insurance, and how much coverage they need is very personal. Bolder Insurance has personal advisors, as well as multiple life insurance companies that can help answer these questions.
Contact one of our advisors with your questions at 303-449-9595 to discuss your life insurance.