Many people believe life insurance is a need for later in life, however, it is best to purchase the coverage when you are young and healthy and the rates are lower. It helps provide financial security and gives you the peace of mind knowing that your family will be supported.
One of the most important times to buy life insurance is when you purchase a home. Most banks will encourage you to protect your family with mortgage insurance, however, purchasing a life insurance policy is actually a much better and more affordable option. With mortgage insurance the beneficiary of your policy is the financial institution and not your family. The payout would be used to pay off your financial obligations to the Institution while with a life insurance policy you own the policy and your named beneficiary gets to decide how best to spend the benefit. Pay off credit cards, mortgage, student loans, funeral expenses, child care education and costs, etc. Whether you’re married or single, it’s good to know that your finances will be resolved if you should die unexpectedly.
The general rule for life insurance is that your policy should pay your beneficiary 7-10 times your annual salary. If you’re self- employed or own a business you might also have business related expenses to cover as well.
There are different plan types that are suitable for everyone. Our advisors at Neil & Associates can assist in evaluating your needs, whether it is for personal or business protection we can ensure to provide you comfort in knowing that you and your family will be protected.