Thinking about life insurance can be scary, but the reality is that having it is a crucial part of your estate planning process. Unfortunately, because it’s not a subject people like to discuss, most procrastinate about purchasing life insurance until it is too late, or a life-altering event occurs that prompts them to move forward. However, the earlier you buy a life insurance policy, the better it is - for yourself and your loved ones.
Life insurance is pretty simple, with there only being a few options to choose from. At Parsons & Howard Insurance Group in Kentucky, we will work with you to determine exactly which option is best for you. For simplicity, term life insurance is the easiest to understand. In short, you pay an annual premium for the coverage, which is determined by the insurance company after the completion of a physical for a period of years (typically 20). If you die within the term period of the policy, then your designated beneficiary will receive the amount of money that you purchased. For instance, if you buy a $1 million life insurance policy and pass away before the term expires, the beneficiary receives that money tax-free.
When deciding if you need life insurance, it is important to consider where you are in life. Do you own a home, a business, have debt, or have children? If the answer to any of those questions is yes, then life insurance is a must. The money your beneficiary receives can be used to pay for their living expenses, which often include any of your debts like a mortgage, student loans, or even college tuition for your children.
At Parsons & Howard Insurance Group in Kentucky, we understand that talking about death is not enjoyable, nor is it a conversation that you want to have. That’s why we make the process as easy, informative, and enjoyable as possible. We’ll take the time to answer your questions, make you feel comfortable in any decision you make, and be ready to support your beneficiary if needed.