Key Considerations About Life Insurance

In the journey of life, there may inevitably be situations that defy our expectations, potentially resulting in tragic events and long-term fallout. Even anticipated hardships that may occur along the way, such as illnesses and old age, could have significant ramifications that require careful planning. With these unfortunate inevitabilities in mind, establishing and maintaining financial security measures, such as suitable life insurance, should be a top priority.

At KSA Insurance Agency, we understand that while many people may realize the importance of life insurance, they may not fully understand their options. With this in mind, we are happy to make ourselves available to guide you and your family through assessing and addressing your insurance needs.

Why Is Life Insurance Important?

Adequate life insurance can make all the difference as families mourn the passing of a loved one. After all, the death of a loved one could incur significant losses and expenses, both direct and indirect, making the funds provided by an insurance payout potentially critical. This financial assistance could be used to assist with various costs, including anticipated future expenses (e.g., college tuition for children), settling outstanding debts and replacing lost income. In the wake of tragedy, the financial security offered by insurance could allow family members to focus on the grieving process without worrying about fiscal concerns.

What Types of Life Insurance Should I Consider?

Life insurance comes in many forms, but policies typically fall under one of the following two primary classifications:

• Term life insurance—As its name suggests, this type of policy establishes and maintains coverage for a predetermined period of time (e.g., 10, 20 or 30 years). Beneficiaries may receive a payout if an insured’s death occurs while the policy is active.
• Permanent life insurance—These policies can insure someone for the remainder of their life, meaning beneficiaries can receive aid regardless of when death occurs. This type of insurance may also accrue cash value over time, which can be used for various means.

What Life Insurance Is Best for Me?

When weighing your insurance options, consider the following:

• Term life insurance may be a suitable choice if you need to establish financial security for a set period of time, such as young parents or those with mortgages. You could arrange a term life insurance policy to ensure benefits for your children or spouse until they reach adulthood or pay off the financed home.
• Permanent life insurance could be ideal if you want to establish ongoing financial security for loved ones while building savings toward retirement or other financial goals. In many cases, the cash value accrued by these policies can be borrowed against, used to reduce premiums or invested in various stocks and bonds.

In many cases, it may also be advisable to consider purchasing and maintaining multiple forms of life insurance simultaneously.

We’re Here to Help

Contact KSA Insurance Agency today to learn more about insurance or to compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.