Life and disability insurance policies help to protect families against the risk of an unforeseen accident or illness causing the loss of income from a family breadwinner. For most families, losing income from a primary earner would be a devastating event and it would be difficult to make ends meet without insurance protection.
The need for insurance is evident and it is important to consider what approach makes sense given your situation and circumstances. In most cases, a term life insurance policy is preferable, as it provides the insurance during the time period when it is needed and at the lowest possible cost. This type of policy typically works better than a permanent life insurance policy, which is designed to extend well beyond the time period for which insurance is needed and at costs that are typically much higher than a term policy.
There are many additional considerations when examining life and disability insurance policies, including:
- What insurance makes sense when combined with benefits provided by the employer?
- Taking into account specific health issues and concerns, what is the most cost-effective way to approach the insurance?
- Is there an estate planning need for a permanent life insurance policy?
- How are current permanent life insurance policies performing? Is there an opportunity to make changes to optimize existing cash values?
Working with an advisor can help put an appropriate insurance policy program in place that addresses your specific needs in a cost-effective manner.