Which Life Insurance is Right for You?

LifeGoesStrong.com is an NBC affiliated site designed for “mid-lifers,” or those in the 45-65 age group, focused on providing information related to technology, home, work, family, and such, as it relates to its readers.  Recently, they published an interesting article, “Term Life Insurance: Right for You?” that addresses a common question amongst this demographic; do I need life insurance and what type should I purchase? The author received expert advice on this topic from the CEO of Goldman Group, Marvin Goldman, of Little Falls, New Jersey.  Goldman has been a financial advisor for over 35 years and offered three considerations to make when investigating life insurance.

The first question to ask yourself, according to Goldman, is why you’re purchasing a policy in the first place.  Understanding why you’re buying a product will help determine which type of product is most appropriate.  The most common reason for purchasing a policy is to protect your loved ones financially if something happens to you.  If you have enough assets to cover the needs of the loved ones left behind, then you might not need a policy, claims Goldman.  Understanding the differences between term and whole life insurance is the second point to ponder.  Term insurance can give you a lot more for less money, but the policy will end at a predetermined time, which obviously may not coincide with death.  On the other hand, you’ll spend more on a whole-life policy, but are often guaranteed benefits.  Many don’t realize that a combination of the two is available as well, which often suits the needs of many.  Goldman believes that choosing a type of insurance is directly related to the question of why you’re purchasing in the first place.  If you’re sole purpose of a policy is to protect your young children, then perhaps buying a term policy that expires after your youngest graduates from college is best.

Another consideration is a newer product on the market, which is a life insurance policy with a rider that provides long-term care for a certain amount.  This product however requires a bit of research, due to several cautionary details that determine what exactly constitutes as long-term care and how to qualify.  Considering that nursing home costs can reach upward of $100,000 annually, it’s worth looking into though.   On that same note, Goldman highly recommends looking into a variety of options and insurers before purchasing a policy.  He recommends learning the ratings of a company from Standard & Poors, or Best, in order to determine the quality of service you can expect.  Additionally, term insurance quotes will vary considerably from company to company, so shopping around can help you get the most for your money.  Also, a good rapport and trust with your agent is always helpful, as they are likely to assist you in selecting the right policy for your unique situation.