Oklahoma Life Insurance. Is your family protected?
As we begin the new year, many of us are reflecting on our responsibilities and reassessing our plans for the future. For some of us, that means making more time to spend with family and friends or spending less time at work. Others are considering Oklahoma life insurance and what it could mean for the family in the unfortunate event something were to happen. Take some time to read a little about the different types of life insurance that are available and know what you’re looking at when and if you decide to purchase.
How Do I Know if I Need Life Insurance?
While we’re young, many of us don’t think much about life insurance. Often, we’re so busy with daily life, we neglect to take into consideration what will happen after life. Particularly for those with young children, purchasing life insurance is a sound decision that benefits not only your loved ones but you as well.
When you purchase a life insurance policy, you choose a beneficiary who receives a death benefit when you die. If you provide financial support to your family, a life insurance policy can replace these contributions when you are no longer alive to do so. In addition, older folks may want to consider life insurance to protect older children from having to deplete retirement savings on account of unforeseen medical expenses. A life insurance policy can also help pay for a mortgage or other financial obligations and debts left behind.
What Types of Life Insurance are Available?
There are different types of life insurance policies with different benefits and risks. Some are defined by a specific length of time which eventually expires, while others accumulate a cash value that can be used while you are still alive. Choosing the right Oklahoma life insurance depends on your family obligations and the amount of time you plan on holding your policy.
Term Life Insurance
The least expensive and simplest type of life insurance is term life. Offering benefits for a specific amount of time, a term life policy requires you to pay a monthly premium in exchange for a cash benefit paid to a beneficiary on your death. When the premium is not paid, the policy lapses, but if the policy term ends before you die, you have the option to renew.
Whole Life Insurance
With a death benefit and a cash value, whole life insurance tends to be more expensive. In addition to a death benefit, there is a cash value attributed to the policy that can be used before death and must be refunded if the policy is surrendered. Premiums are fixed, meaning they will not increase as long as they are paid on time
Universal Life Insurance
Universal insurance builds cash value but provides more flexibility with premiums and death benefit amounts. As with whole life, you have the flexibility to use accumulated funds from your life insurance policy before you die.
Choosing the right life insurance can be challenging. If you have decided this is something you would like to pursue, taking the time to familiarize yourself with the different types available will help you make the most appropriate decision for your family’s specific needs and budget.