Nobody wants to think about needing life insurance, but it’s best to plan for the worst should anything happen to you. Life insurance from Gleetopia is a great way to make sure that your family is protected after you’re gone. However, most people aren’t sure when is the best time for them to buy a policy. Keep reading for more information about the best time to buy life insurance.
What is it?
Life insurance is designed to provide a benefit to your dependents should you pass away unexpectedly. If you have a policy, the death benefit will be paid out to your beneficiaries, who are typically your dependents. There are two main types of life insurance that you can buy to make sure that your spouse and children are covered. You can buy either term or permanent life insurance.
What is term life insurance?
Like it says in the name, term life insurance is only good for a specified term. A death benefit is guaranteed to be paid out to your beneficiaries but only if you pass away during the term. This means that if your term is up at age 65 and you die at age 66, there is no payment.
What is permanent life insurance?
Unlike a term life insurance policy, a permanent plan never expires. A death benefit will be paid out to your beneficiaries. Something that’s unique about permanent life insurance policies is that they can build cash value. As you pay your premiums, you maintain the death benefit while establishing cash value that can be borrowed against or withdraw cash from.
What is whole life insurance?
As a form of permanent life insurance, whole life insurance lasts for the rest of your life. Your whole life insurance policy comes with fixed premiums as well as the ability to borrow against your policy. This can be a great option if you’re planning to buy your policy when you’re young.
What is universal life insurance?
A universal life insurance plan is another type of permanent insurance policy. This plan will also last for the rest of your life. The main difference between universal and whole life insurance is that a universal plan offers flexible premiums and death benefits. Furthermore, the cash value of your policy grows at a variable interest rate. This can yield higher returns in the end. A universal life insurance policy offers more flexibility compared to a whole life plan.
Should I buy life insurance when I’m young?
That depends on your personal situation. If you don’t have anybody who depends on your income, then you can wait. Although, once you have a spouse or children who rely on your ability to provide then you should consider getting a policy. One benefit of buying a policy when you’re young is a low premium. This is because you’re likely healthy and your odds of dying are relatively low compared to others who might be buying a policy.
You can get customized life insurance with Gleetopia so that your family is taken care of after you pass away. Give our team a call at 650-898-2838 or send us a message via our online contact form. We can present to you our insurance options or answer any questions that you might have regarding a life insurance policy.