Want to learn more about how life insurance can benefit you and your family?
Types of Life Insurance
Not sure what the different kinds of insurance are or what they mean? Below are some basics to help explain what kind of coverage various options can provide.
Whole Life Insurance
Whole life insurance is permanent life insurance that provides protection for your entire life and offers financial support of a loss at any time.
Term Life Insurance
Term life insurance offers financial support of a loss only during a specified period. The premiums may be lower than whole life insurance premiums, but it won’t offer coverage for your entire life.
Accident Insurance
Accident insurance offers protection that pays you cash when you suffer an unexpected, qualifying injury.
Critical Illness Insurance
Critical illness insurance, also known as specified disease insurance, protects you and your family should a major medical diagnosis occur. It pays you lump sum benefits upon initial diagnosis of a range of medical diagnoses from heart attacks to cancer, to childhood diseases, to many other health conditions.
Disability Insurance
Disability insurance is income protection designed to help cover any income that is lost because of a disabling injury or illness.
How Much Life Insurance Do You Need?
Did you know your age may affect your perception of how much life insurance you need? The annual Insurance Barometer Study conducted by LIMRA and Life Happens reveals insights about how life milestones impact people’s attitudes about life insurance. This year’s study included members of Generation Z for the first time, offering an interesting window into how four different generations approach life insurance.
How Life Insurance Helps Protect Your Family
While many people put off getting life insurance, more people in recent years are beginning to understand the importance of getting enough coverage. A 2023 Insurance Barometer Study conducted by LIMRA revealed that 101 million U.S. adults currently need life insurance but don’t have any. However, 41% of respondents said they need life insurance or need to get more, revealing the awareness of how important this coverage is for many Americans.
The good news is, being covered by permanent life insurance, such as a whole life policy, can give you and your family better peace of mind. If you’ve been delaying getting enough life insurance to help protect your family due to misperceptions about coverage, here are the myths – and the facts – to help you understand how important it is.
Four Major Milestones and Insurance Options to Consider for Each
1. Summer camps – Whether it’s your youngster’s first day camp or your teen’s first weeklong overnight adventure, it’s always an exciting time for parents to see their children try new things and make the most of their days off. However, just as
you pack them the essentials to stay comfortable and safe at camp, you should also consider extra insurance options. Children will be trying so many new things and unfortunately sometimes the unexpected occurs. Accident coverage can complement your medical coverage, which can help with out-of-pocket expenses that you may incur as a result of an accident at camp or elsewhere.
Three Main Benefits of Investing in a Whole Life Insurance Policy
- 1. Guaranteed Cash Value
Unlike term life insurance, whole life insurance accumulates a cash value that you can dip into during your life if a financial need arises. More importantly, as long as you pay your premiums, the cost of your policy will not increase, and the face amount and the interest rate are guaranteed. To access the value of the account, you essentially take a taxable withdrawal or tax-free loan you can pay back. You can use the money as needed — such as to buy a car or put a down payment on a house. Even if you never access the cash value during your lifetime, it will act as a safety net that can be used in financial emergencies. Whole life insurance can also supplement your existing retirement accounts, like your 401(k) or IRA account, helping you enjoy your golden years.
5 Things to Know While Searching for Life Insurance
- 1. Don’t wait
According to the “2019 Insure Your Love Consumer Survey” by Life Happens, 69% of consumers with life insurance said that they felt less stressed knowing their loved ones were financially protected. Beyond establishing that protection right away – before it’s needed – another advantage is that typically, you can secure lower rates for life insurance when you’re younger.
Common Misconceptions of Life Insurance
Myth:
Life insurance is only available directly through financial advisors. This is not the case. In fact, quality, strong valued policies for your entire family are often available through your workplace or your spouse’s workplace. For example, Boston Mutual Life Insurance Company offers a wide range of workplace solutions paid for by employers, employees or both, including whole life, term life, critical illness, accident and disability insurance. Licensed sales associates of Boston Mutual Life Insurance Company are always available throughout this process.
Glossary
Beneficiary – The person or persons named in the policy to receive the insurance proceeds at the death of the insured.
Cash value – The sum of money that can build inside many permanent life insurance policies and can be accessible. The actual cash value may be decreased by a surrender charge, loans or withdrawals.
Did You Know?
- 35 million U.S. households recognized the need for life insurance in the past 24 months, but only 13 million purchased coverage.
– The Purchase Funnel, LIMRA, 2022
- LIMRA research shows that, despite shifting priorities, employees still place workplace benefits among the top factors they look for in a potential employer.
– BEAT Study: Benefits and Employee Attitude Tracker, LIMRA, 2022.
- Life insurance is significantly less expensive for the young and healthy; LIMRA even reports that 4 in 10 insured consumers wish they had purchased their policies at a younger age.
– 2022 Insurance Barometer Study by LIMRA and Life Happens