Nobody really likes to think about life insurance because we all like to believe that we're going to live forever. Medical miracles notwithstanding, common sense dictates that we should contact an insurance agency and make preparations to take care of our families in case the worst should happen. Denver, Colorado residents are not immune to the course of nature and would be wise to put some thought into selecting the right life insurance policy.
The type of life insurance you need depends on your situation. Someone who is just interested in seeing that his children are taken care of if something should happen before they are grown up is probably fine with term life insurance. Someone looking for more of an investment with cash value they can withdraw or borrow against later in life might lean toward policy with a cash component, like whole life, variable life, universal life or variable universal life.
The big advantage to term life insurance is its cost. It is the cheapest insurance because the only benefit to it is the death benefit, and even that does not get paid if you survive past the end of the term. People often adjust the term of term life insurance to match some life event like their kids growing up, their house being paid off or their retirement.
The idea behind insurance types with cash value is that some portion of your premiums remain available as cash and possibly even gets invested for growth, but at the cost of higher premiums. This money accumulates throughout your ownership of the policy, giving you a savings account of sorts that you could borrow against or possibly withdraw in emergencies. People often use this type of insurance as sort of a retirement supplement. An added benefit of some cash value policies is that they sometimes mature to the point that the interest on the cash value is enough to pay the premiums, essentially leaving you with no premiums to pay.
If you're considering life insurance, the best way to determine which policy is right for you is to talk to an agent, preferably an independent agent who will be there to answer all of your questions, not only before you buy the policy but whenever they come up. If you live in Denver, CO or elsewhere in Colorado, we are the independent insurance agency that can answer your questions and help with your insurance needs, so contact us today!
