thinking out loud

How will your family survive when you are gone? Will your love ones have the financial burden of your funeral expenses? Will your spouse be able to keep the family home, pay bills, and pay for the children college education? These are things no one wants to think about, but realistically should be part of your financial plan. Having life insurance can give you the peace of mind that these things will be taken care of when you are gone. If people understood the benefits of life insurance they would be more likely to invest in a life insurance policy. This essay will examine the variety of life insurance products available, the benefits of purchasing life insurance, and the cost of life insurance in today’s market.
Types of Life Insurance
“Term insurance usually provides the largest amount of insurance protection at the lowest initial cost. It last for a specific time period, or “term.” Consumers purchase term life insurance for many different reasons. “Because they are time-specific and relatively inexpensive, term policies are typically best for providing protection for large commitments or needs of known duration.” For example, a married couple may purchase a term life insurance policy on each other to cover their mortgage in the event one was to die unexpectedly.
Traditionally, term policies did not earn cash value, or dividends. In today’s market there are multiple term products available that offer more features than the traditional term policy. For example, Prudential offers a term policy called Prulife Return of Premium Term. This product gives you all the benefits of a traditional term policy, but it returns the premium paid for the life of the contract if the insured person outlives the term period. Additionally, term life insurance normally includes an option to convert your term policy to permanent insurance.
“Permanent life insurance helps provide protection for as long as you live and can be used to cover long or unplanned needs. It can be used