Life Insurance 101: Everything You Need to Know
Life insurance takes care of your family when you no longer can. It’s sobering to think about, but average after-death costs are rising — and a robust life insurance policy can make sure your family doesn’t have to worry about finances on top of their grief.
At Lindow, we know this is a complicated topic. That’s why we’re committed to helping you sort through your options!
Read on for an overview of everything you need to know about life insurance.
First things first: Is insurance a scam?
A lot of people think insurance is a scam — and if you’re honest with yourself, you might be one of them. As much as we hate the idea, we understand where you’re coming from! It’s difficult to know who to trust, especially when considering deeply personal and financial decisions.
Learn more about how and why insurance works here. We are here to support you.
Understand a few key insurance terms
Let’s face it: The insurance world can be confusing. Understanding a few key insurance terms can make conversations with your agent — and any independent investigations into your insurance policies you do on your own — considerably easier as you move forward.
We’ve provided an explanation of some of the most common insurance terms here.
What exactly is life insurance — and how does it work?
Three different types of life insurance
There are three different types of life insurance: employment-based, term, and permanent.
Employment-based life insurance usually only lasts for as long as you continue to work for the company that is providing the policy. If you change jobs, you’ll need to find another insurance option to protect your family.
In a term life insurance policy, your coverage only lasts for a pre-specified amount of time, often 20 or 30 years. This means that your annual premiums are low, but your family won’t benefit from any coverage after the term expires. Term life insurance is a particularly popular option among healthy adults, who often choose to invest the difference between their term premiums and what they would pay for a permanent policy.
In a permanent life insurance policy, your coverage lasts as long as you continue to pay your premiums, with no predetermined expiration date. Your short term premiums are higher, but these policies allow you to accumulate cash value over time. This is helpful for those who are in a high tax bracket and can benefit from an additional investment.
When is the best time to buy life insurance?
If you don’t already have life insurance and anyone in your life relies on you financially, the answer is now. Purchasing life insurance sooner rather than later is one of the best decisions you can make for you and your loved ones.
Learn about why it’s never too early to buy life insurance here.
Get rid of your life insurance misconceptions
More than any other type of coverage, we understand that life insurance can feel complicated. Sometimes it’s tough to know what information you can trust — after all, who really knows best when it comes to such a personal decision?
Let’s set the record straight by tackling some common misconceptions about life insurance policies here.
Millennials and life insurance: what’s the deal?
For many millennials, life insurance is one of the last things they think about when planning for the future. We get it — you’re typically young and healthy! But it’s important to consider life insurance at every age.
Read some of the most important facts millennials need to know about life insurance here.
Your Lindow agent is here for you
Understanding life insurance can be difficult — but that shouldn’t stop you from applying for a policy. Whether you’re a millennial, member of generation x, or a baby boomer, it’s important to be prepared.
Lindow Insurance offers free life insurance quotes to learn how much starting a policy would cost — and our compassionate hometown agents are here to walk you through any questions you may have along the way.