Always Buy Local

Talking about things I am passionate about is what I do best, and I am passionate about life insurance.  So, it was typical of me to be discussing life insurance at a recent networking event.  The man I was chatting with commented “I don’t understand life insurance at all.  What is the point?  I will be dead”   An interesting remark from a single, childless, middle aged man.  Rather sad I thought, but his position did make sense.  The only reason to purchase life insurance is to financially protect someone you love if the unthinkable occurs.

Last week I got terrible news that a former high school classmate had suffered a massive heart attack while camping with his wife and 3 small children.  His death sparked lots of grief while we reminisced about his happy, smiling face.  Did he have life insurance?  I don’t know, this is a subject seldom discussed and one I always question when I hear of a sudden death.  Ten years ago, one of my very best friends lost her husband to a horrible work site accident.  Thankfully, they had just increased his life insurance to cover their new, much higher mortgage.  Because Mike died on the job, money was available, but the company didn’t want to pay and it was tied up for months in court.  Without life insurance, Maryann would have been forced to sell their home and uproot her young children still grieving for their daddy.  Fortunately, Mike’s life insurance was enough to pay the mortgage and allowed Maryann to remain at home and raise her children into happy, productive adults.

“Okay, okay”, you say “I’m convinced.  How do I know what type to buy?”

There are many kinds of life insurance, but they generally fall into two categories: term insurance and permanent insurance.

Term insurance the most affordable type of insurance when initially purchased, is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.

Permanent insurance by contrast provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time.

It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances and financial goals. Often, a combination of term and permanent insurance is the right solution.   For more information on premiums, how much you need and which type to buy, please contact me or your life insurance specialist.

Catherine March

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www.catherinemarchagency.com