The idea behind life insurance is simple–you pay now to protect your family after you’re gone. There are many kinds of life insurance available, and it can be hard to find the right coverage. In this article, we will explain your options and help you find the insurance you need.
Features and Coverage to Consider
Basic coverage is intended to give financial support in the event of your unexpected death. Term life insurance provides lower cost coverage than whole or Group Life Rapid City SD, and can be had for a certain length of time.
Cash value and market participation is a consideration you will need to make if you need long-term coverage, want to borrow against the value of the policy, and have a bit more to spend. There are three varieties of permanent life insurance: whole, universal and variable universal. The latter lets you invest the cash value of the policy in stocks, and its value rises and falls based on the performance of your investments.
If you’re paying off a mortgage, you might want to consider term life insurance. It offers a set period of protection, while other forms of insurance last a lifetime as long as premiums are paid.
Before buying, ask Mountain Plains Insurance about associated charges and fees, how those fees are determined, and what you are paying for. Access to your funds is important as well–will you need to pay a child’s college tuition, or borrow for retirement? Most group life, whole and universal policies allow you to take loans, but some are restrictive as to interest rates and when or how much you can borrow at one time.
A Final Note
As your personal situation changes–through deaths in the family, births, job changes and marriages–your life insurance requirements will likely change as well. When these changes occur, it’s important to talk to your life insurance company to ensure that your policy still suits your long-term needs. Volatility in the market can mean premium increases, and buyers should evaluate their continued ability to pay against the risk of allowing the policy to lapse.
