Preheader

 

Home Page Facebook Twitter LinkedIn YouTube Blog RSS Feed Header

Auto Insurance Homeowners Insurance Business Insurance Life and Health Insurance Post Header Line

Life insurance is a phrase that is tossed around and a product that is often purchased without a clear understanding of what it means. For many people, the Michigan life insurance policies they hold are not going to last them long enough to pay off. For this reason, it is important to understand the different policies, what they mean and why it is so important to shop now instead of later.

Term life insurance policies only last for a specified period of time. The benefits expire when that period ends, and any money placed into them is wasted. These policies tend to be bought more often because they are less expensive, but consumers are saving money on a less effective policy. In essence, they’re saying they must die before the policy ends. No one wants to feel that way.

Whole life insurance policies last from the moment of purchase until the death of the insured, no matter what. These are more expensive because their coverage might last many years or even decades. This type of policy is less common than term life due to its expense, but is beneficial in many ways. Once owned, whole life policies are less stressful, as the insured knows that their plan will cover them in the event of their death. Also, whole life insurance policies can be borrowed against (albeit at high interest rates) in case of an emergency.

Many policies are woefully underfunded. Ask yourself: what is your plan? $100,000? $150,000? The average consumer holds around $50,000 in debt, and the average funeral cost is between $10,000 and $15,000. When you consider that it takes around two to three years of financial readjustment for the surviving spouse with an average household income of $32,000, then you are looking at $161,000 already, and that doesn’t include additional expenses. Keep in mind that you want to leave enough for your spouse to live on until they adjust. Would you like to leave enough behind to help put your kids through college? To pay for your daughter’s wedding? These questions are important to ask yourself.

Life insurance costs are based on age and health at the moment of purchase, so your health in the past or the future is irrelevant. Buy now, before costs rise. A healthy 40-year-old man might pay between $300 and $500 a year for life insurance for a $500,000 policy. However, those costs double and quadruple over the next 20 years for the same cost. If purchased at an even younger age, like the 20s, a plan could pay out well over $1,000,000 at a low cost per year over a lifetime.

Call Insurance Planning Service at 800-220-5582 today for more information about purchasing a life insurance policy.

Share |


NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
BEST WISHES FOR 2017!

Citizens Insurance
Grange Insurance
Hagerty
Hastings Mutual
Michigan Insurance Company
Philadelphia Insurance Companies
Get A Quote
 
       

Home   About Us   Contact   Blog   Partners   Privacy Policy


Insurance Planning Service - Mailing Address
4808 Broadmoor Ave SE | Grand Rapids, MI 49512

Phone: 734.421.9900 | Toll Free: 800.220.5582 | Fax: 734.421.9911

Also serving these Detroit area communities in Michigan: Livonia, Farmington Hills, Ann Arbor, Southfield, Plymouth, Canton, Westland, Northville, Novi, Dearborn, South Lyon & Walled Lake