1/8: Life insurance should be included in your financial planning.

Let's talk about your two life insurance options

#FinanciallyFluentThread #LifeInsurance

2/8: There are two types of life insurance you can consider:

1) Term Life Insurance
2) Whole Life Insurance

What you decide to implement is based solely on your own situation.

Let's talk about the differences between the two.

3/8: Term insurance gives you the greatest amount of coverage for a limited period of time

Hence the name TERM for TERMination date

This type of life insurance is typically inexpensive because of its termination date and not having any cash value

4/8: Level Term insurance will provide you with a fixed, low premium for the duration of the coverage

It will provide you with a pure death protection as it will only pay a death benefit if the insured dies

Term insurance can be renewable and convertible to Whole Life

5/8: Whole Life insurance provides death benefits for the entire life of the insured plus it also provides living benefits in the form of cash values.

The premiums are much higher than term premiums because of the living benefits that come with it.

6/8: Whole Life will have fixed premiums (payments) and matures at age 100.

Policy loans can also be taken out against the cash value but you have to build that CV first. Most states say you have to wait 3 years.

They come with interest and you cannot exceed the guaranteed CV.

7/8: There are many types whole life insurance that I won’t go into in this thread,

but the differences between them is how the policy is paid.

8/8: Regardless of where you are in life, you should seriously consider life insurance and do your due diligence on what makes sense for YOU.

Here to talk through it if you need help!

#FinanciallyFluent