INDUSTRY INSIGHT
INSURANCE
SPONSORED CONTENT
Is Life Insurance Right for You ? By Patrick Geary
Ahh … spring is in the air ! Spring itself is a cause for celebration in our region . There are also many family celebrations that happen this time of year : graduations , weddings , a baby , a new home , a new vehicle , and many more . Believe it or not , this is also the perfect time to think about insurance coverage . Yes , it is the perfect time to look at home and auto coverage ( I can certainly help you with that ), but let ’ s take some time to talk about coverage that many times gets overlooked : life insurance coverage .
There are generally two types of life insurance policies , term life and whole life . A very common question that many people ask me is , “ What are the differences between a term life insurance policy and whole life insurance policy ?” Let me try to simplify it for you . n FEATURES OF WHOLE LIFE INSURANCE
• Covers you for life .
• Provides death benefits as well as a cash value accumulation that builds during the life of the policy .
• You must typically qualify with a health examination .
• Takes 12 to 15 years to build up a decent cash value .
• Can be a good choice for estate planning purposes .
• Cash value is based on how much the return on investment is worth .
• A portion of the cash value can be withdrawn or borrowed during the life of the policy .
• Initially has more expensive premiums than term life insurance , but can potentially save you money over the life of the policy if in force for a considerable number of years . n FEATURES OF TERM LIFE INSURANCE
• Provides death benefits only .
• Provides benefits only if you die while the policy is in effect .
• Easiest and most affordable life insurance policy to buy .
• Purchased for a specific amount of time , such as five , 10 , 15 , or 30 years , known as the term .
• Becomes more expensive as you age , especially after age 50 .
• The term must be renewed if you want coverage to be extended beyond the term length .
• Can be used as temporary additional coverage with a whole life policy .
• Can be converted to a whole life policy .
When choosing between whole life and term life insurance , there are many variables to take into consideration . I can help you evaluate each of these and decide if term life or whole life is the best option for you . n FACTORS IN CHOOSING WHOLE OR TERM LIFE
• Your age
• Your overall health
• Financial needs of your family
• Plans for funeral and death expenses
• Age of your children
• Long-term health expenses in the event of a serious illness
• Your mortgage and current debts
• When you plan to retire and any retirement plans you already have in place
• Future needs of your family , including children ’ s college tuition
• Whether you want to donate life insurance proceeds to charity
• Your feelings on paying into a term policy and potentially never receiving any of that value back
I find that many people ask themselves , “ Do I really NEED life insurance ?” I respond with a reminder that life insurance isn ’ t about you and it probably isn ’ t about today . If you have a mortgage , plan to send your kids to college , or just have long-term financial goals , I can help you find a life policy to fit your unique needs . Let ’ s sit down together and have a conversation . Call 814.315.2700 or email pgeary @ farmersagent . com to schedule your no-obligation appointment .
This Industry Insight was written by Patrick Geary . Patrick Geary is the owner of Cornerstone Wealth Advisory and Insurance Services , LLC ., located in Erie , PA . Our clients come first . Everyone is treated with respect , integrity , and honesty . Through a long-term commitment to these principles , we strive to be known as a company that builds solid relationships . Mr . Geary is licensed in PA , NY , and OH to provide individual and commercial insurance coverage . For a free quote call 814-315-2700 or email pgeary @ farmersagent . com .
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