INDIVIDUAL LIFE INSURANCE
Individual Life Insurance
What a difference an Insurance Policy can make in life.
Though it appears to be a bewildering array of policy types you can boil it down to two categories of insurance policy ; Permanent and Term. As a rule, permanent needs should be covered with Permanent Insurance and temporary needs by Term Insurance. Often a combination of both kind of coverage (Term and Permanent) can be facilitated in one single policy.
So, what is a temporary need? A mortgage payment; continuing income while your children are young; some business obligations such as credit obligations and so on. What are considered permanent needs? Funeral costs; supplementary survivor income; coverage for capital gains taxes at death, especially if family property is to be passed on to the next generation and for children who remain dependent throughout adult lifetime due to a a permanent disability would be covered by Permanent Life Insurance
When examining an existing insurance policy make sure to reassess:
- Your cost of insurance increases with age
- Type of existing coverage
- Current health status
- Your past needs versus current needs.
