By Dan Zottoli, FDA Services Director of Sales – Atlantic Coast
Life insurance planning can sometimes be overwhelming, causing many to put off this particularly important conversation. Many people don’t want to face their own mortality, let alone deal with trying to filter through the many options available. The process can be made much simpler if you focus on WHY, HOW MUCH and WHAT TYPE.
The need for life insurance coverage can be broken down in the simplest terms. For example, if you die, how would your loved ones move on financially? Uncertainty in a response to this simple question establishes the need for coverage.
This is the part of the process requires more thought, certainly, but often we give it too much thought. Make it simple! What do you want to accomplish with the life insurance proceeds? Examples of this can be to pay off all debts, provide enough for college education for children and provide enough for 10 years of income. Overthinking this stage causes many to put their planning on hold.
So, we have established the WHY and have determined HOW MUCH. What type is best for you?
Term vs. Permanent Life Insurance
Term life insurance is designed to provide life insurance coverage for a certain term of years. For example, a 30-year term policy would insure you for the 30 years, after which, you would be uninsured. Term policies are perfect for those with a “term” need. For example, those that want to be insured until their children are finished with college or until their debts are paid off.
Permanent life insurance is designed to provide life insurance coverage on a permanent basis. These policies fit a lot of situations, but certainly if there is some permanent need to provide life insurance proceeds upon the death of the individual. An example of this could be someone purchasing life insurance who has a disabled child that will require care upon their death or those who will have a life insurance need that surpasses the available term lengths.
So, we’ve simplified the process. Now, don’t forget to reach out to FDA Services. Our dedicated team can assist with all the above and more and guide you in the right direction.
Our experienced staff is ready to get to work for you — call or text 850.681.2996 or email [email protected] to connect to our agents today.