What Life Insurance Is Best?
If you're in the process of looking for life insurance, it can be overwhelming with all the options for you to consider. Often times, it leaves dads confused and keeps them from getting the protection they need in place for their families.
In this guide, we'll give you an overview of the life insurance options out there, and show you why term life insurance is the best option for families who want the most amount of protection for the lowest, affordable costs.
What Is Term Life Insurance?
Term life insurance protects families for a certain amount of time. Often, those time periods are 10, 20, and 30 years and cover the family if the policyholder happens to pass away during that time period.
Why Term Life Insurance Works For Most People?
Affordable Protection: term life insurance offers the most amount of coverage and protection for families without the high costs and high fees that can come from other types of policies.
Simple To Understand: it's clear and concise. There's no confusion amount coverage amounts, cash values, and fees.
Term life insurance is the foundational plan that most families need to protect their future. Dads often find it is the most beneficial plan to protect their income, mortgage, and education costs for their family.
What is Whole Life Insurance?
Whole life insurance covers the policyholder for his/her whole life. The majority of whole life plans offer premiums that never change and the coverage amount never changes. These policies have become popularized in recent years due to the cash-value option these plans offer.
Individuals are able to build up cash-values that they can utilize while they are living for loans, investments, etc. to build their net worth.
Because these policies never expire and offer cash-values, often times they make sense for individuals who are retired or who already have high net worth.
But most of the time, these policies don't make sense for Dads and families because:
Costs: policyholders pay substantially more per month for the same amount of coverage when compared to term life insurance policies.
Loss of Cash-Values: when the policyholder passes away the family is not entitled to the cash-values. It is transferred back to the insurance company and the family only receives the death benefit amount.
Investment Potential: cash-value growth is typically slower and come with higher fees than traditional fees making it less attractive for families who have time to invest and allow compounding interest to work in their favor.
What We Love About Either Life Insurance Option?
While we definitely believe term life insurance is the better option, life insurance offers Dads a great way to protect their family's security, future, and their legacy. It gives them the peace of mind knowing no matter what happens to them, their family is protected.
Also, with a term life insurance policy or a whole life insurance policy, both offer benefits that are tax free. This is a great way to ensure your family gets the full benefit and it doesn't get locked up in probate or government taxes before your family receives it.
Summary
Term life insurance offers the best balance of affordability and protection for 99% of the families in the U.S. With the right term life insurance policy, you can have the peace of mind knowing your family is protected when it matters most.
