Life insurance can feel overwhelming, with so many different options to choose from and fine print to sift through. But at its core, it’s simply a way to help protect you and your loved ones financially and provide peace of mind for the future.
Choosing a life insurance policy starts with understanding what coverage options are available and what fits your needs.
Workplace life insurance is available through your job, and provides a lump sum payment (death benefit) to beneficiaries. It is typically offered by employers as part of a benefits package.
Individual life insurance is available directly to consumers, including those that don’t have insurance available through their job. It is purchased directly by you from the insurance company. This option is tailored to personal goals, typically paid monthly, and provides greater flexibility in coverage and customization.
To help you make an informed decision, let’s break down the primary types of life insurance and coverage options for each. Here are two of the main types of life insurance policies:
1) Whole Life Insurance: Provides lifelong coverage with rates that won’t go up. It also builds cash value over time that you can borrow against or use if needed.* Common for those seeking long-term financial planning and guaranteed coverage.
*Cash value can be reduced by loans or withdrawals.
2) Term Life Insurance: Provides coverage for a specific period (like during employment with a company) with generally lower premiums. It doesn’t build cash value but can offer you and your family additional affordable protection when you need it most.
One common myth is that life insurance is only for older adults. But the reality is, securing a policy at an earlier age often means locking in lower premiums, which can save you money in the long term.
Milestones and major life events provide the perfect opportunity to assess your insurance needs. Here are some examples:
Even after learning the differences between each type of plan, selecting the policy that makes the most sense for you and your loved ones can still be confusing. Here are five simple steps to guide your life insurance decision-making:
Step 1: Assess Your Needs
Start by assessing how much your loved ones would need to cover debts, living expenses, and future financial goals, should the unexpected happen.
Step 2: Consider Your Budget
Review your budget and determine what you can comfortably afford to pay monthly or annually. Most people tend to assume life insurance is more expensive than it actually is – you may be surprised to see how little it may cost each month.. Boston Mutual Life offers policies with flexible premium options, ensuring you find coverage that fits within your budget.
Step 3: Explore Policy Types
If budgeting is a priority, term life insurance may be the best fit. If you have multiple dependents, whole life insurance might be a better option. With Boston Mutual Life Insurance, you can tailor both your coverage and premiums to meet your needs, as many of their offerings feature:
Step 4: Consult a Representative
Reach out to a Boston Mutual Life representative for personalized guidance to help you navigate your options.
By taking these steps, you can choose a policy that may be the best fit for you and your family. Remember to regularly review your coverage, especially after major life changes, to ensure it provides ongoing financial protection for you and your loved ones.
Interested in learning more? Click here to connect with a representative and explore your life insurance options.