Life insurance is one of the most important purchases that you can make for your loved ones. Sure, it isn’t going to be the most fun purchases, but it’s vital. Losing a loved one is never easy, but leaving behind thousands of dollars in debt can make it even worse. This is where life insurance comes in. At Longevity Brokers, we are proud to provide affordable life insurance to anyone in the Denver, CO. area.
When you’re looking to purchase a life insurance policy, there are several different types that you have to choose from. Term, whole, no-exam, and many more. One of the most misunderstood types is universal life insurance.
We want to ensure that you make well informed and education decisions when you purchase life insurance, to do that, we are going to clear up some of the confusion surrounding universal life insurance.
The Advantages of Universal Life Insurance
One of the biggest benefits of a universal policy versus other types is the flexibility. With other life insurance policies, when you purchase the plan, you’re givien a monthly premium rate. That’s what you’re going to pay every month for as long as you hold that policy. With a universal policy, you have the ability to adjust the premiums within certain limits. This is a great tool because life changes quickly. There could be some months where you need to decrease your payment to pay for other expenses. You also have the ability to increase your monthly payments and pay extra, if you have enough extra payments built up, you can skip a premium if you ever need the additional money.
Another difference between these plans and traditional plans is the flexible death benefit from the policy. Universal life insurance policies have the ability to adjust your death benefit as your need increases or decreases. With a term insurance policy, you would have to purchase another plan if you wanted more or less coverage, but universal allows you to adjust (within limits) without having to get a different plan. While you might have to go through the medical underwriting depending how much change you want, it’s still easier than other plans.
Much like your life changes through the years, your need for life insurance is going to change as well. Maybe you have a kid, get married, or start making a higher salary, you’ll need your life insurance policy to increase. Or maybe one of your children graduates college and gets their own job, maybe you pay off your mortgage and have less debt, then you won’t need as large of a policy.
Just like other permanent insurance policies, a universal plan also builds up cash value inside of the policy. The longer that you continue to pay monthly premiums, the more value inside of your policy. The biggest advantage to this is that you can borrow against that value if you ever need a loan. This is a helpful tool in case you ever run into a financial emergency that you don’t have the money to pay for.
How much Life Insurance Coverage do You Need?
Regardless of which type of life insurance policy you choose, it’s important that you get a policy that is large enough. There is a delicate balance between getting enough coverage, and not paying for more coverage that you need. There are several different factors that you need to consider when purchasing life insurance.
Sit down and look at how much debt you currently have. If you were to pass away, all of that debt would be left to your family. One of the main purposes of life insurance is to pay off any expenses that you would leave.
The other factor that you have to consider is your annual salary. The other goal of life insurance is to replace any income that your loved ones would lose if you were to pass away. Most financial experts suggest that you get a policy that is ten times your annual income. This would ensure that your family has plenty of time to find a way to replace your income without struggling financially. If your children are grown and don’t rely on your salary, you can consider getting a smaller policy or adjusting your universal life insurance plan.
Insurance Coverage and Longevity Brokers
It’s easy to see why life insurance is so important, but finding the perfect policy can be a long and confusing process, but we are here to help. At Longevity Brokers we are committed to giving affordable insurance coverage in the Denver, Colorado area. Life insurance is just one of the many products that we are pleased to provide.
Every year we hear stories about families that lost a loved one suddenly. While going through this tragic time, they find themselves with thousands of dollars of debt that they have no way to pay for. Don’t let your family become another one of these stories. Life insurance will give them the resources they need to get through the difficult time without adding any financial strain.
Quality life insurance is just one of the many different insurance products that we offer, we can also assist you with your homeowners and auto insurance in Denver as well. If you have any questions about universal life insurance, any other type of life insurance, or you would like to receive life insurance coverage, contact an agent today. You can call us at (72) 209-4598 or use our contact form and an agent will be in touch.