There are two broad categories of life insurance: term and permanent. Most people buy the latter, data shows, which doesn't jibe with advisors' suggestion.
Permanent insurance is generally more costly, advisors said. Policy premiums are spread over a longer time, and those payments are used to cover insurance costs and to build up cash value.
Premiums can vary greatly from person to person. Insurers base them on a policy's face value, and the policyholder's age, gender, health, family medical history, occupation, lifestyle and other factors.There are three main reasons it may make more sense to buy a permanent policy, despite the higher premiums, said McClanahan, founder of Life Planning Partners. This would aim to ensure there's an insurance payout upon death, no matter when that occurs.
Some policyholders may also want to leave a financial legacy for family or charities. Additionally, others may have a relatively minor health complication with the potential to worsen later; at that point, the policyholder may be uninsurable — in which case it'd be beneficial to buy a permanent policy today to ensure coverage later, McClanahan said.
For example: If you die, how much money would you want to leave for liabilities like a mortgage, student loans or auto loans? How much money would loved ones like a spouse and kids need if they were to suddenly lose a policyholder's income? How much would you want to leave as a legacy for causes that are important to you?Cheng offered her personal situation as an example. She purchased a 20-year term policy with a $750,000 death benefit when all three of her kids were younger than age 18.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
Russian mercenaries’ short-lived revolt could have long-term consequences for PutinThe march on the capital by Wagner troops led by Yevgeny Prigozhin and the late-night deal that eventually halted it severely dented Putin’s reputation as a leader who is willing to ruthlessly punish anyone who challenges his authority.
続きを読む »
Russian mercenaries' short-lived revolt could have long-term consequences for PutinA short-lived revolt by a rebellious Russian mercenary commander has ended with his troops beating a retreat, but the extraordinary challenge to President Vladimir Putin’s two-decade hold on power could have long-term consequences.
続きを読む »
Nancy Pelosi pushes term limits for Supreme Court justices following ethics allegationsFormer House Speaker Nancy Pelosi (D-CA) says that she supports term limits for the Supreme Court amid scrutiny over the court's ethics standards.
続きを読む »
Trump: ‘We Will Defeat Radical Democrat Policy of Late Term Abortion'Former President Donald Trump aims to bring an end to 'the Radical Democrat policy of extreme late term abortion,' if elected.
続きを読む »
Nancy Pelosi Says Supreme Court Justices Should Face Term LimitsThe former House speaker also argued that the Supreme Court should face ethics regulations as well.
続きを読む »
Opinion | As they near their term’s finale, the justices take a breatherOpinion by Ruth Marcus: As the justices conclude their work in the next week or so, the silver lining of the term might be this: It could have been worse.
続きを読む »