Explain the financial safety net of life insurance
Life insurance is something that most of us will purchase in our lifetime. You have two options to choose from: whole life insurance and term life insurance. So which option is the best?
TOLEDO, Ohio – Life insurance is something most of us will buy in our lifetime … it’s a âfinancial safety netâ.
Here is what has always troubled me. They have two different kinds, term and lifetime.
Eventually, you can buy to cover the mortgage in case you die within 20 to 30 years, so your family can be safe.
Permanent or lifelong? Think of it as another retirement nest egg.
While many of us may have term life insurance policies through our employer, most of our life insurance should be privately owned.
Lou Ramirez has been with Savage and Associates since graduating from college. Selling life insurance policies and working in finance was all he wanted to do.
“While I am working, the income that comes home depends on whether I go to work every day, so if I get run over by a Mack truck, that income is gone,” Ramirez explained. âWhen I retire, the income is based on the assets we have; 401 (k), IRA, whatever assets we live off. “
So the need for life insurance disappears when you retire.
However, if the markets are bad it is a good source of income to have a lifetime. It is only increasing by 4%. 100, but it’s guaranteed income.
âAs long as the markets are performing when I retire, I can live off my investments. But as soon as there is a downturn, if I can take money out of those investments, it destroys the asset base. So if I can turn that off and take it out of life insurance now, I’m not removing assets from something that is negative in value.
There are many factors that go into the cost of life insurance. Age, health and lifestyle are just a few of these factors.
On average, a healthy 35-year-old can purchase a 20-year million dollar term life insurance policy for as little as $ 50 per month.
All of life is more.