It can be somewhat intimidating to think about the different kinds of life insurance available and make good decisions about the coverage needed. This is why it is important to talk with an agent at Linda Dugan Insurance, serving Astoria, OR and nearby areas, to get some help understanding what life insurance is adequate for your needs.
Types of Life Insurance
Here are some basic differences regarding different kinds of life insurance:
- Whole Life: This type of life insurance provides protection for loved ones if a person dies, can pay some part of the benefits if a person becomes permanently disabled, and serves partially as an investment. Whole life insurance is meant to be kept for a long time. Over time it builds up cash value, which can be used to borrow against or to pay premiums for future insurance.
- Term Life: Term life provides insurance for a specific time period and does not accumulate cash value.
- Universal Life and other investment styles: Universal life is a hybrid policy that combines term life with a savings component. Ask your agent about the life insurance types that have investment characteristics.
Insurance for Different Stages of Life
The type and the amount of life insurance protection needed to provide adequate coverage depend on a person’s age, marital status, and the number of children they have. Younger, single people have only the basic life insurance needs that are necessary to cover the cost of a funeral. When a person gets married or has a significant other in their life, it is time to consider life insurance to help them if something happens to you.
Once a person has children, it becomes imperative to have adequate life insurance coverage. As an adult, who loves their children, having life insurance gives you peace of mind when thinking about providing a secure future for your kids. As you get older, when your kids grow up and move away from home, life insurance needs are reduced.
Make an appointment to talk about life insurance with your agent at Linda Dugan Insurance in Astoria, OR if you need a new policy or to review existing policies to make sure you have adequate coverage.