Guest contributor (and my wonderful, handsome and wicked smart husband) Jason Rasmussen, Owner of Silverline Financial, chimes in with a few
Q.What is the difference between term & permanent life insurance?
A. I believe there is a time and situtaion fitting for both types of insurance. I personally own both kinds of policies. Term Life Insurance is designed to provide protection for a specified period of time. Though the policy does not accumulate cash value, if you have a temporary need for life insurance or are on a limited budget, term insurance may be the best option for you. Term Insurance is very inexpensive and is a cost effective way to protect your family. You simply pay your monthly premium and the life insurance promises to give your family the amount in the death benefit if you should pass away. Term Insurance usually has a set premium time period, for either 10, 15, 20 or 30 years. I personally believe everyone should have some kind of term insurance, in the event of a death.
Permanent Life Insurance has many different 'names' and options. The basics behind a permanent policy is to pay enough in premiums so that the policy is fully funded and there is no need to pay premium amounts into the policy. The policy is purchased by paying the premium for a set period of time. These policies have become more flexible and easier to work with into what you want accomplished. Because permanent policies are complex and wide spread, you should contact your Financial Specialist for more information.
Q: What are the major reasons to own a life insurance policy?
A: Studies have shown that the average American does not "like" to worry about death, retirement or disability (shocking, I know) But the fact of the matter is- you never know when life could change and being prepared with life insurance is the safest bet you have in the event something does happen. Besides offering major tax benefits, life insurance is the only investment I have felt 100% confident in. Its never too late to start investing in your future. As my motto says, "Plan today, for a prepared tomorrow."