Life Insurance & Disability Insurance
How do I know if term life insurance or permanent life insurance is right for me? This is a question that has been debated by many professionals over the last 100 years or more. However, the best way to find out is by having a conversation with a professional life insurance agent that understands what you are looking to accomplish. Many people will say, "Buy Term & Invest The Rest." Other people will say, "Buy Permanent Life Insurance As There Is High Chance That You Will Outlive Your Term Insurance." We are all like fingerprints. Meaning, we all have different life insurance needs and hearing one side versus the other can be very confusing and may not help understand what you are looking to accomplish with life insurance. At Financial Colors Insurance, we will ask you the right questions to determine which life insurance product will help you achieve your life insurance planning goals.
Term Life insurance is the lowest cost out of the different types of life insurance. Term life insurance is bought for a specified term such as 10 years, 20 years or 30 years. What this means is that if you buy a term life insurance policy, the insurance company will pay a death benefit to the beneficiaries if the policyholder dies within the term agreed upon.
Permanent Life Insurance is a life insurance policy that does not expire as long as the policy is in force.
Permanent life insurance combines a death benefit with a cash-value component that can allow the policyholder to build up a substantial amount of tax-deferred savings over time. Unlike term insurance which lasts for a specific period and no cash value features, permanent life insurance is designed for life long protection and potential for retirement income.