We all want to plan for our future and ensure that we are taken care of in case something happens. Life insurance can help with this by providing financial support during times when someone needs it most, such as unexpected unemployment or retirement.

Individual life insurance is a policy that is paid by one person and covers a single person. It is distinguished from group life insurance, which covers employees of a company or members of an organization. This insurance is intended to meet the financial needs of a surviving spouse or family members in the event of the insured’s death.Individual life insurance is more expensive than group life insurance. Since the risk is concentrated in a single person, the policyholder cannot take advantage of the savings that come when risk is distributed among a group.

While that theoretically sounds like a nice sum of money, in practice it may only be enough to cover funeral expenses and a few mortgage payments. But with a larger coverage amount, your family can realize far more benefits, such as:

Income replacement for years of lost salary
Paying off your home mortgage
Paying off other debts, such as car loans, credit cards, and student loans
Providing funds for your kids’ college education
Helping with other obligations, such as care for aging parents
There are tax advantages of life insurance, because death benefit payouts are generally tax free; and some policies have features that can help transfer money to heirs with fewer tax liabilities.
Some policies have a cash value that accumulates over time and can be used to pay premiums later, or even tapped into to help live on in retirement.
Life insurance can often be bundled with other types of protection, such as disability insurance to replace a portion of your salary if you’re unable to work.
Many policies have valuable “riders” or contractual provisions that provide benefits before death.
Choosing life insurance
Once you understand the importance of taking out a life insurance policy, you need to make the right choice. To do this, you need to ask yourself about your needs and purchase a product that works for your family and insurance premiums that fit your budget. A financial security advisor can help you with this.

Family and work situation
First of all, your insurance needs will be influenced by the following: your family situation, your age, your health situation and whether you are an owner or self-employed. Life insurance is important, whether you are single or in a relationship. In the event of your death, your loved ones will have to pay your funeral expenses and pay off any financial liabilities you have, such as your debts. If you have insurance coverage, your debts will not be a burden for your family members.

Life goals
Your personal, family and professional goals will also determine your choice of life insurance. For example, do you plan on having children? What are your career and income goals? At what age would you like to retire? This will help you evaluate how much life insurance you should take out to protect your loved ones in the event of death.

You have thought about your situation and life goals. Now all you need to do is figure out what type of life insurance is best for you. For example, you might ask yourself if you need short-term or long-term coverage. Do you want coverage that generates liquidity and surrender value that you can use to reach your goals, etc.? Once you answer these questions, you will be well equipped to choose the life insurance that works best for you.

It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options

If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.

Contact us today to help you with multiple options to choose from.