TO RENT OR OWN LIFE INSURANCE… THAT IS THE QUESTION!

by Sherry DeVouse-Dennard, State Farm Insurance

As an Agent, I get this question a lot while conducting insurance wellness reviews with customers. There’s no right or wrong answer. It really depends on your individual situation and what you ’re looking to accomplish for your family. The two major types of life insurances are Term and Permanent life. A term policy is very much like renting an apartment. Hinge on the word term and the meaning thereof. The Merrian-Webster definition defines term as a period of time fixed especially by law or custom. Thus, much like an apartment, you ’re leasing a term life policy for a defined period of time. After that “term” has expired, you have the option to renew, typically at a higher price. There are valid reasons to have term as part of your family ’s protection portfolio. For example, your income is instrumental to the wellbeing of your family and you want to ensure their standard of living doesn’t drastically change due to an untimely death. Term could provide that large umbrella of protection and serve as a financial tax-free backbone, especially during child-raising years. Now let’s talk about permanent whole life insurance and liken it to “ owning” a home.

In this example, we’ll hinge on the word “ whole” . Per dictionary.com, whole definition, comprising the full quantity, amount, extent, number, etc., without diminution or exception; entire, full, or total. Therefore, whole life insurance is designed to be permanent or lasting your “ whole” life. Contrary to term, you can actually own this policy and the premiums will never change as long as the policy remains in force. Long after your term policy has expired, your whole life will remain constant until the end of life. Whole life insurance provides permanent life insurance protection on a single life. Several optional riders are available to help customize the policy to address individual needs.

The immediate death benefit, and over time, the guaranteed cash value and nonguaranteed dividends, helps provide financial security for the beneficiary in the form of a death benefit, and "living benefits" for the policy owner.

“Now let’s talk about permanent whole life insurance and liken it to

“ownin Takg” e a p a eek h into a day ome. ” in the life of budding Whole Life ar ma ti y st Stell also be a u Youngsed for,business owners to a and how she imprddress business covesontinuation concerns, or provher cride an a aftdditional benefit for a key employee. Benefits of Whole Life Guaranteed lifetime death benefit (as long as required premiums are paid) Guaranteed level premium Guaranteed cash value that grows federal income tax-deferred Eligible to earn non-guaranteed dividends. Dividend options include; accumulate at interest, reduce the annual premium, purchase paid-up additional insurance, or be paid in cash. Death benefit generally passes tax-free to the beneficiary To learn more about other life insurance options, visit my website at www.sddinsurance or call my office at 678782-3005 for a consultation to customize your family ’s protection portfolio.