Let’s start off first with the definition of what Life insurance is: a form of insurance in which a person makes regular payments to an insurance company, in return for a sum of money to be paid to them after a period of time, or to their family if they die.
Whether you are a young family just starting out, or turning 50, having a life insurance policy is important protection and is crucial to keep it up to date and renewed.
If you have known financial obligations that have not been fully funded or saved for (e.g. college loans, mortgage) you should renew your term life insurance policy. You can only renew a term life policy. Whole life insurance is purchased for your entire life, while term life lasts for a certain number of years, such as 10, 20 or 30 years.
Enrolling in a life insurance policy in your 20s or 30s will save you money. The monthly cost will be very low due to age. If you let that policy lapse and renew in your 50s then you will have a higher premium and be required to do a medical exam. Also, if you renew your policy you can always reduce the payout according to your needs at that time of age.
If your term policy is about to expire and you need to decide if you want to renew, make a list of the reasons you might want to renew. Remember, you might not need to buy the same policy at 75 that you did when you were 25. You can also choose to purchase a 10-year term instead of coverage for 20 or 30 years. If you’re not sure, give us a call at 727-584-9999