We don’t know how to stress it enough: LIFE INSURANCE SHOULD BE A CRITICAL PART OF YOUR PERSONAL FINANCIAL STRATEGY; no matter your age. There are two, main types of life insurance you need to know about: “Whole” life insurance and “Term” life insurance. Knowing the difference between the two is an important factor and your decision on determining which to choose is heavily influenced by your financial standing – and your age.
For that reason, our Beck Curry Insurance Group professionals are going to dissect the topic of life insurance to help you both understand what it is, the pros and cons of each type and who it MAY be best for by age:
Whole Life Insurance
Whole life insurance is insurance that pays a benefit on the death of the insured and also accumulates a cash value.
Term Life Insurance
Term Life Insurance is insurance that pays a benefit in the event of the death of the insured during a specified term.
Recommendations by age:
Millenials: Most who are between the ages of 19-29 are just starting their careers may not be able to afford the cost of living and the monthly premiums on a Whole Life. (If they can, “kudos” to them and go for the Whole Life!) But Term Life insurance offers them the financial flexibility with a lower payment and the conversion clause will allow them to convert to Whole Life as they move up the pay scale and get settled into their adulthood.
Generation X: Generation X’ers are most often times the perfect fit for a combination/hybrid of some whole and some term life insurance. They benefit from term life insurance for the potential short term needs raising family (yet getting closer to an empty nest), costs of the transitional phase of children’s college education, etc. A smaller whole life corresponds well with this insurance strategy to cover things like unexpected funeral costs, as Generation X’ers begin the initial process of thinking on end-of-life concerns.
Baby Boomers: Most Baby Boomers are looking for whole life; something that is going to be used for their burial and safeguard the other assets that they’ve built in life. For them, it’s really about leveraging money. A lot of Baby Boomers have the financial ability to pay for their own funeral with cash they have accumulated. However, on average for every .33 cents you pay into a life policy it will pay off approximately $1.00 in debt/financial obligation. Smart Baby Boomers realize and take advantage of this.
Never put off buying life insurance for any reason, especially if you have a home and family that you need to protect. If you would like to talk about which life insurance policy works best for YOU, taking into consideration all of your personal needs and finances, let Beck Curry Insurance Group shop your rate and help you sleep a little better at night! Email us at firstname.lastname@example.org or give us a call at 317.272.0800.