Investing in life insurance: A primer

While life insurance can seem like a once-in-a -lifetime decision, there are a number of life events that should cause you to re-evaluate your life insurance policy to determine whether or not you have enough coverage for you and your family. So what should your life insurance policy do for you and your family? What life events should make you re-evaluate your life insurance policy? Balancing your life insurance coverage with your current personal situation is important to ensure that your loved ones will have the best protection.

Your age and your personal situation determine your need for life insurance. As long as you have children or a spouse, it is highly recommended that you obtain life insurance to ensure that they are cared for long after you are gone. If, however, you have neither children nor a spouse, the question remains is, do you still need life insurance? One thing to consider is whether or not you have loved ones who rely on you for financial means, such as your siblings. Another important consideration is your age. Obtaining life insurance when you are young can save you money, so if you plan on purchasing a life insurance policy it is wise to invest early on.

There are generally two types of life insurance plans: term and permanent. Term life insurance is recommended for those young at age and with a family. It offers maximum protection for the lowest premium but it is only valid for the term of the policy. Permanent life also referred to as whole life insurance, on the other hand, offers you protection for life. It also offers a better return on premiums paid, as it incurs a cash value. While the premiums on a permanent life insurance policy will be higher than that of a term policy, it may be a better choice in the long run.

You should expect to see changes in your life after retirement. When you retire your financial situation will more than likely change. Your children may not need the same financial protection that they once did. This is when it is important to review your life insurance policy and make adjustments to fit your needs. If you are on a term life policy, this may also be a good time to invest in permanent life that will offer you cash value.

For more information on life insurance, call Pacifica Insurance Underwriters, Inc. at 234-6267 or visit their office located at Joeten Center in Susupe. You may also visit www.pacificains.com or send an inquiry via email to piui@pacificains.com. Pacifica Insurance Underwriters, Inc. is a general agent for Pacific Guardian Life. [B][I](Pacifica Insurance)[/I][/B]