Now that you’ve mastered wearing a mask and social distancing, are you thinking of other types of protection? Do you have life insurance? If you don’t, this is the perfect time to consider your options. If you already have a policy, why not double-check your coverage?
ESSENCE and our good neighbors at State Farm suggest these three steps to protect your loved ones with life insurance.
Protection with a Purpose
In the era of COVID-19, every decision feels very big. Sometimes getting started can feel overwhelming, especially for an intimidating decision like life insurance. So, let’s take it step by step. Before we even look at what type of insurance you may need, begin by determining who you plan to protect, maybe young children or older relatives. If you are married, life insurance is essential to protect your spouse. Nothing can replace you, but life insurance can help replace your income. It provides valuable financial protection at a time when your family needs it the most.
Now, let’s talk about some things that you may want to protect. Life insurance provides a guaranteed death benefit and those funds could help your family maintain their standard of living—think mortgage, utilities, childcare and car payments. The proper amount of life insurance is important to appropriately protect your family’s standard of living.
Types of Insurance
Now that you know who you want to protect, it’s time for step two: choosing the right type of life insurance policy to meet your needs.
Term life insurance is straightforward. You purchase a policy to provide financial protection for a specific time period—think 10, 20 or 30 years. Term life insurance allows you to purchase a greater amount of coverage for a lower initial cost when compared to permanent life insurance. You can customize the coverage period (e.g., 30 years) to match your specific needs (e.g., the length of your mortgage). In addition, your premium payments generally remain the same throughout the time period you select. Term life insurance is ideal to address temporary coverage needs, such as paying off a mortgage, an auto loan, other debts or your child’s college education expenses.
Permanent life insurance, like whole life and universal life, provides financial protection for your loved ones that lasts your lifetime. In addition to providing a death benefit, these policies also build cash value, often referred to as living benefits. As you make payments on your policy, the cash value builds over time and can be accessed through loans or partial withdrawals while you are alive. Your cash value benefits can be used for a variety of purposes, such as supplementing retirement needs, assisting with college expenses for children or covering an emergency medical expense.
Leaving A Legacy
We all want our family to be comfortable and cared for, and maybe you have other passions that you’d like to support as well. The last step in this process is to give some thought to how you want to be remembered. If you’d like to donate to causes you care deeply about, life insurance can help you do just that. You can name an organization, such as a school, university, church or not-for-profit that you volunteer at, as the beneficiary. Directing life insurance proceeds to an organization that you strongly support and believe in is a great way to leave a legacy that will make a positive impact for years to come.
Are you ready to take these first steps? Click here to connect with your local State Farm agent to talk about your personal life insurance needs and see what options are available.
State Farm Life Insurance Company (Not licensed in MA, NY or WI) State Farm Life and Accident Assurance Company (Licensed in NY and WI) Bloomington, IL