Valentine’s Day is for Love (and Life Insurance)

February 10, 2020

Are you debating between candy or flowers this Valentine’s Day?  We are all getting more and more creative in the ways we tell our Valentine, “I love you!”  What’s more romantic than making sure the love of your life and your family will be taken care of during the different stages of your life?   For this year’s Valentine’s Day, in addition to the romantic gift, why not use the day to think about your life insurance coverage? 

Term Life Insurance 

Term life insurance provides protection for a specific period of time, such as 10-30 years. Of the different types of policies available to you, it is also the least expensive form of insurance. Depending on your family circumstances, this insurance often makes the most sense because it allows you to maximize the benefit you can afford. 

If you have young children, term life insurance allows you to provide for your family’s lifestyle during the years your children are under your roof and being educated. Once they “leave the nest” and continue with their lives, you probably don’t need to ensure their care. 

Many insurance professionals recommend that you purchase term life insurance for 10x your current pre-tax income.  We prefer to suggest you think about what it will cost to raise, educate and launch your children as your desire. If you are planning to have multiple children, often it makes good sense to purchase a modest policy when the first is born and then layer on additional policies with later maturities as each additional child is born. 

Permanent Life Insurance 

While we generally recommend term life insurance for most of our clients, it is also worth considering a permanent life insurance policy. Unlike term insurance that has a limited life, this type of insurance provides an unending benefit throughout your lifetime to secure your spouse or children that may need lifelong support. 

Permanent life insurance, available as universal life or whole life, is typically more expensivethough policies may have a fixed premium or a flexible premium depending on your choices.  These policies also have an investment component that can further grow the value of the policy as a death benefit or as cash value that you can usually access if necessary during your lifetime. If you are concerned about lifetime support for a spouse or family members or you have a family history of later life medical issues, a permanent policy may be the right fit for you.  When evaluating permanent life insurance, be careful to also look at all upfront and ongoing internal fees.  These policies often have high investment and commission costs to consider. 

This Valentine’s Day, after you’ve shown the love with flowers and candy, show your significant other that you will protect them too. If you have any questions as to which insurance policies make sense for your particular situation, contact us.