 | Judd Schossow is an Agent with Farm Bureau Financial Services at 219 S Ozark, Girard, KS. Judd has been an agent with Farm Bureau for 5 years, he can provide you with strategies for all stages of life: Vehicle, Homeowners, Farm, Business, Life Insurance, Annuities, and Investments. To schedule an appointment please call 620-724-4213 or email Judd.Schossow@fbfs.com |
Insurance
2012-03-26 08:29:47
Life insurance made easy - series - part 2
Q: There are so many options and things to consider when deciding on life insurance policies. Can this be broken down in some way to help me better understand the policy that’s best for me and my family?
A: Last month, we discussed 2 of 4 major concepts to consider when purchasing life insurance (“Need” and “Amount”). Let us continue with Concepts 3 & 4…
Concept 3: Type
Different benefits within your policy have different options and you can even enjoy some of them while you are living.
•Do you want cash values to build within your policy? If you view your insurance policy as equal parts savings and a hedge against risk, then you might want to consider a permanent policy like a whole life or universal policy. These policies all offer cash value growth and permanent coverage (for as long as the premiums are paid) and access to the cash values through loans or policy surrenders.
•How risk tolerant are you? If you have higher risk tolerance, variable or equity indexed policies may be the right choice for you. If you have a low risk tolerance, the fixed whole life and universal policies might be a better fit.
•Do you want the least expensive coverage and, if so, are you comfortable with coverage for only a limited number of years? If one of your priorities is to buy insurance coverage that is inexpensive, then a term policy may be right for you-as long as you are comfortable with the lack of cash value growth and the fixed term of coverage.
Concept 4: Purchase
The last thing you need to consider is where to buy your life insurance policy.
• Does your employer offer group coverage? Group coverage can be easy and affordable, but it does not offer permanent protection nor cash value growth, and is rarely portable if you lose your job or take a new position.
• Should you buy direct from an insurance company? Without a licensed agent to help you compare rates, underwriting policies and policy benefits, you may be jumping into a policy that doesn’t meet your needs. Buying life insurance online is a fast way to get locked into an unsuitable policy.
Remember, life insurance is a very important decision…it is critical to map out and thoroughly discuss the policy that is best for yourself, your lifestyle, and your family.
