Category Archives: Insurance

Myths about Life Insurance that Could Hurt Your Family

Many people who are just starting out with a family know that it can be tough to make ends meet. From buying a home to raising children, there are endless responsibilities that come into play. One of the most important, and often overlooked responsibilities, is making sure your family will be protected financially in the future, should something happen to you.

Consider for a moment what would happen to your family – or any young family – if you or the main income provider were to suddenly die. Would your family lose the house? Would your children have to leave their friends and move to a different school? Would the standard of living they are accustomed to remain the same if you were gone? The best way to make sure that your family is financially secure in the future is to ensure you have enough life insurance coverage now. Unfortunately, there are some myths that young families mistakenly heed regarding life insurance, which sometimes result in financial devastation for loved ones left behind:

  1. “Life Insurance Policies are Too Expensive.” Actually, there are many different options when it comes to purchasing a life insurance policy, many of which are quite affordable. One of the best and least expensive options, especially for young families who may have limited budgets, is to purchase a term life insurance policy. Term life insurance offers the most coverage for the lowest premiums; it is mainly for this reason that so many young families find a plan that fits their budgets, their needs, and their lifestyles.
  2. “Term life insurance is the only type of coverage I’ll need.” Although it’s a great option at first for young families who have limited budgets, that doesn’t mean it should be the only type of insurance they should have. Permanent life insurance offers valuable unique features like the ability to accumulate cash values on a tax-deferred basis and lifetime protection. It’s similar to assets in many retirement savings plans, where cash can be borrowed against the policy (or accessed altogether) for important needs.
  3. “I Don’t Need Life Insurance Since I’m not the Primary Income Earner.” Whether you bring home a large paycheck, or yours is the only paycheck, or even if you don’t earn a paycheck, you might very well need life insurance coverage. If you are a stay at home parent, you perform valuable services that would be costly to replace for your spouse or partner. Childcare costs alone can easily run in the hundreds or thousands of dollars every month; a good life insurance policy will provide the funds to cover such expenses.

In order to fully protect the financial well-being of your family in the event of your death, you need a life insurance policy – but not just any policy. It’s vital that you have enough coverage for your family, and that you have the right type of life insurance. For more information on life insurance for young families, and for quick, accurate online quotes from leading providers, use Intramark’s online quote tool.

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How to Talk About Life Insurance With Your Spouse

Your spouse doesn’t even want to think about you passing away, let alone have to sit down and actually discuss it. It’s never easy to talk about death, especially the death of someone you love. That’s why discussing life insurance with your spouse can be so difficult. But since the two of you share a life together, with all the financial responsibilities that it entails, it’s a conversation that has to come up at some point. Here are a few tips on broaching this awkward but necessary subject:

Consider your timing

Like bringing up any touchy subject, timing makes all the difference. We found that one of the best times to bring up life insurance is right after the birth of a child. Another good time to bring up life insurance is during or shortly after a separate but similar financial planning conversation. For instance, if you have just finished discussing the estate plans of a loved one, you can easily transition into the life insurance conversation without it seeming too shocking or out of place.

Reframe the conversation

One of the reasons that it’s a good idea to discuss life insurance after welcoming a new child into the world is that it allows you to shift the focus of the conversation from death to future planning. Instead of an out-of-the-blue conversation about your possible demise, you can instead speak about life insurance in terms of planning for the baby’s future financial security. But this method also works regardless of whether or not you have had or are expecting a child. If you simply bring it up in terms of planning for you and your spouse’s future, or elder members of your family that might require expensive care, you can speak about life insurance as a planning tool rather than a death benefit.

Talk about the numbers

You can also take some of the visceral sting out of the life insurance conversation if you talk about it purely in terms of facts and figures. Before you bring it up, make sure you have concrete details about how much money you will need to have in order to pay off the mortgage, save for college, etc. And then get some rate quotes together and present the life insurance topic in terms of a purely financial decision. This might make the conversation a little duller, but dull is better than downright depressing.

Set the tone

It’s sometimes best to preface the conversation with a little warning. Something along the lines of “I want to talk about something that might be uncomfortable for both of us, but I think it’s important.” This might make him or her a little uneasy, but it’s better than just blurting out something about death out of nowhere. It’s also important to be in a place where you can sit down face to face. So try to avoid springing it on them in the middle of a dinner out or while running errands. If you set the tone up front, it will allow your spouse to adjust a little bit and prepare for the difficult conversation beforehand.

Whatever You Do, Don’t Give Up

There are a lot of misconceptions out there about life insurance (i.e. it’s only for old people, it’s too expensive etc.) and it can take some time to break through these misconceptions. So if your spouse puts up the defenses, or is having trouble making a decision, be respectful, but be persistent. Prices tend to increase the longer you wait, so don’t give up right away if he or she says no at first. If need be, get a professional involved. Most agents and advisors will be happy to sit down with you and your spouse and discuss your options.

If you and your spouse are ready to purchase life insurance or increase life insurance, get started with a free quote today.


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Term Life Insurance vs. Whole Life Insurance

Deciding which type of life insurance product is right for you can be difficult; regardless of whether you’re considering retaining your current policy or you’re shopping for new coverage, it’s important to note that there are benefits to both term life insurance and whole life insurance. Which is the best fit for your needs, preferences, lifestyle, and family?

There are some key differences and similarities between these two types of coverage. As for similarities, they both offer a guaranteed death benefit, and they both offer generally federal tax-free benefits. But let’s consider some of the differences between whole life insurance and term life insurance.


Whole Life Insurance and Its Value

Whole life insurance premiums are generally higher initially than those for term life insurance because those premiums are guaranteed to stay the same for the life of the policy. A whole policy offers tax-deferred cash value accumulation, which you can access through partial surrenders or policy loans. This growth is dependent upon premiums being paid, as well as your eligibility to earn dividends, and grows very slowly. The dividends are also usually not guaranteed. Therefore, you can borrow against the value of your policy by way of a loan, and use the funds for any purpose. However, if any policy loans aren’t repaid with interest, the death benefit is reduced.


The Value of Term Life Insurance

Term life insurance, on the other hand, offers much lower, inexpensive premiums initially that are guaranteed for that initial term; this makes term life insurance a popular choice for those who need coverage at a low rate now. There are privileges that are often available with many policies; these would enable you to convert a policy that builds cash value without the need for additional medical underwriting.

Terms are usually designed for anywhere from one to 30 years, with the most popular coverage term being 20 years. With most policies, the premium is going to remain the same through the duration of the term, so if you purchase a 30-year term policy, the premium you pay wouldn’t increase during that 30 years. Many people appreciate the ability to change the length of their policy, which is unavailable with whole life insurance plans.


To Choose Whole or Term Life Insurance?

Your personal situation is going to be the best determinant of which type of policy is best for you. Whole life insurance might suit you best if:

-You need coverage at higher, but steady premium for the rest of your life

-You want to provide money for heirs to pay estate taxes

-You want to make inheritances equal

-You want to spend your retirement savings and still leave money for things like funeral costs


Term life insurance, on the other hand, would best be suited for these candidates:

-You want the most affordable coverage

-You need permanent life insurance but cannot afford it

-You want a policy that you can convert to permanent coverage

-You need life insurance to only cover a certain period of time, such as while you’re raising children or paying on your mortgage

-You have a family that needs life insurance coverage


Since different types of policies are best suited for different people, and even at different stages of their lives, it’s important that you obtain the right kind of coverage. For answers to your questions about the various types of policies available, and to shop for life insurance quotes online without obligation or divulging sensitive information, browse the Education Center of our website.

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