There is nothing certain about life except perhaps that is full of uncertainties. The Great Resignation, as it came to be known, of course, has proved this moniker even more true.
Therefore, to learn from the recent history we have all lived through is wise. In doing so, it’s important to contemplate the validity of life insurance. In fact, according to many financial planners and insurance professionals, life insurance is the cornerstone of financial planning and vital to long-term security, especially within The Great Resignation.
Life Insurance is Essential for the Employed and Unemployed/Self Employed Alike
Whether you are currently employed, unemployed, or are self employed, purchasing life insurance can make good financial sense. This is because it can provide for your spouse and/or your children should something happen to you, which provides a measure of financial security that you might not have with your current job situation. It can also replace your income should you lose your life, allowing your family to continue living at their current standards. After all, losing you will be hard enough. However, forcing your family to also replace your income and provide your burial expenses can put an even greater burden on them during an already devastating time.
Whole Life vs Term Life Insurance
There are two types of life insurance you can choose from when it comes time to purchase a plan, these being whole life and term life insurance. Read on to learn the differences and benefits and drawbacks of each type:
- Whole Life Insurance: This type of insurance has no term, meaning that a death benefit for payout is guaranteed. Whole life also has the added benefit of cash value, meaning you can borrow against the policy. The biggest drawback of this type of policy is the cost. It can be much more costly than term insurance due to the life-long provision of the policy. It can also be more complicated to obtain.
- Term Life Insurance: This type of insurance is aptly named as it is valid for a set period of time or term of between 10 and 20 years. It only pays out when you pass away during the set time allotment. It is the more affordable option between the two because it expires. Therefore, many choose this type of insurance when just starting out in life. The cons of course are that you can outlive your term life policy. While you can renew your term policy at the end of the term, the cost can be significantly different based on your age and health risks.
Ways Purchasing Life Insurance Protects You From Uncertainty and The Unexpected
- Income replacement. It helps replace the income no longer coming in after death, paying for childcare, the mortgage, and more.
- You are protected if you lose your employer’s life policy.
- You are secure financially even with rising inflation.
- You receive tax-free benefits. Beneficiaries enjoy life insurance money tax-free.
- You create an inheritance for those you love.
Bottom Line: Life Insurance is Vital
Life insurance is important, no matter your age, your health, or your lifestyle. In today’s job market with so many people switching or resigning from jobs, it is even more important. Today, it’s important for you to purchase a policy for yourself to create financial security for yourself and your family. Contact us at Arnold Insurance to learn more about life insurance options and what would best fit your needs.
