Becoming a couple or starting a family means sharing responsibility with and for others. Both partners may work; building a lifestyle that depends on two incomes. There will be loans and other debts to pay off. Life insurance is a traditional way of ensuring that your family is taken care of in the event of a tragedy.
Life insurance provides a spouse, children or other beneficiary with resources in the event of the premature death including:
- Replacement income for dependents
- Pay final expenses including funeral, burial, probate and estate costs
- Create an inheritance for your heirs or a charity beneficiary
- Pay federal and state “death” taxes
- Term insurance provides a simple death benefit for a fixed period of time. There are several different types of term insurance – renewable, convertible, level, decreasing and increasing term coverage. The premium may stay the same for many years. However, when the stated term expires, the premium can go up.
- Cash value insurance, as the name implies, provides permanent protection as long as you pay the premium. The premium does not increase over time. The younger a person is when buying the policy, the lower the premium will be for the life of the policy. But because premiums remain level, cash value coverage tends to be more expensive than term insurance. There are different types of cash value or permanent insurance as well – whole life, universal life, variable life and variable universal life insurance.
Planning ahead to provide for your family or favorite charity creates a lasting legacy of your love.
At D.F. Dwyer Insurance, we are here to help you with all of your insurance needs.
Call us at 401-846-9629, we’ll help you determine the best policy choice for you and your loved ones.
Some content courtesy Insurance Information Institute © 2016