Let's Talk Life Insurance

No one likes to talk about life insurance -- or really, any insurance, for that matter. Because insurance implies that something bad could happen -- and no one wants to think about that.

The ultimate "something bad" is death, right? Not to get all philosophical before you've had your morning coffee or anything. Instead, let's just outline the basics of life insurance, and how you can save money by bundling it with your other policies.

Life insurance is, by definition, protection against the loss of income that would result if the insured passed away. The policy names a beneficiary, or person who receives the proceeds from the policy in the event of the insured's death. Usually, the beneficiary is a spouse or dependent.

There are two types of life insurance. Term insurance provides protection for a specific period of time and generally pays a benefit only if you die during the term. It's comparable to auto insurance, in that it's often renewed annually, and does not provide for a return of premium dollars if no claims are filed. By contrast, permanent life insurance provides lifetime coverage and is typically comprised of two parts: a savings, or investment, portion and an insurance portion. This type of insurance accumulates interest over time, and can even be borrowed against. It's also the more expensive option.

Just like you bundle your internet and phone, you can also bundle insurance policies to save money! Many people use the same provider for their home and auto insurance -- so why not add life insurance to the mix? With the savings from bundling policies, it might not be as expensive as you'd think to add life insurance. Plus, you'll be better able to manage your policies, since they'll be in one place.

So, do yourself and your family a favor, and consider a life insurance policy -- for nothing more than peace of mind. As always, if you have any questions, please give us a call, and we will be happy to chat about all things insurance. Just don't ask us about Socrates!

Photo credits: Alan Cleaver; Andreas Tsakalis.