Be sure you’re insured with the right life insurance policy in Brookfield, WI.
Life insurance is a rather dark subject to think about because it forces you to think about you eventually leaving your loved ones behind. As difficult as this is, it is very important to think and talk about with your spouse, especially if there is a baby on the way. Learn about choosing which life insurance policy is best for you and your family in Brookfield, WI, should you pass away.
Term life insurance
Term life insurance is best for young, middle income families with kids because it’s affordable and covers a set period. If you pass away while the policy is active, your family gets the amount that you were insured for. If you live past the end of your term (which is good), then the insurance company gives you nothing (not as good, but better to be safe than sorry!).
Whole life insurance
The more complicated of the two life insurances offers an insurance policy and an investment account simultaneously. The premiums for this type of insurance are higher than Term Life’s, but a portion of that premium goes into a tax-deferred savings account!
The rates are fixed. Meaning that when you turn 70, you’ll be paying the same amount you’ve been paying since the day you purchased the policy. When you pass, your family or beneficiary will collect the amount.
Should you and your family decide not to wait until you pass away, you can cash out the policy when you’re older/retired and net the tax-deferred savings.
How much life insurance should I get?
When it comes to the amount of life insurance you should get, a good rule of thumb is five to ten times your annual income. Everyone is different, and so are their circumstances; how much insurance you need depends on a variety of factors:
- How much your spouse earns – should you pass, what percentage of the family expenses will your spouse’s income cover?
- How much your family spends – things like: housing, food, clothing, etc.
- Large necessary expenses – your baby’s tuition won’t be cheap. Will your family be able to cover the tuition if you pass?
Don’t leave your family stranded in the huge ocean of financial uncertainty. Get the life insurance policy that is right for you! When looking for a policy suited for you, contact Risk Management LLC for all of your Brookfield, Wisconsin insurance needs!
