While life insurance is often a difficult and arduous topic to discuss, it is also vitally important to you, and your family's, financial security. Unfortunately, far too many people do not realize the importance of life insurance until it is too late.
Life insurance protects those who depend on your paycheck, such as your spouse, children and quite possibly, your parents. Should you die prematurely, life insurance can provide ongoing income to your dependents, until they are able to live comfortably without it. It can also be there to provide emergency support for legal, medical and funeral costs, should family savings not be sufficient to cover them.
In general, there are two basic classes of insurance to choose from: term life insurance and universal/ cash value insurance.
Term life insurance is just that -- life insurance, and nothing more. The premium payments are applied 100% to the cost of the insurance. One of the benefits of term life insurance is its simplicity. Term life insurance is, in a sense, much like car insurance, pay the premium, and get covered for the term. Because of this simplicity, term life policies can be easily compared on the basis of price alone, which has effectively led to extremely competitive prices. Many term policies are very flexible, allowing for both renewable (the ability to renew for another term policy without an additional medical exam) and convertible (the ability to convert your term policy into a universal policy) terms.
The second major class of life insurance -- universal insurance -- includes a wide variety of financial products. These products combine term life insurance with a long-term, tax-sheltered savings plan. The important thing to understand about universal policies is that they are designed for life. With a universal life insurance plan, a portion of your premium payment is used to pay for the life insurance alone. The balance, less management charges and commissions, is applied to your savings or investment account. The cash value savings goal provides additional income during your later years to cover higher insurance premiums.
Many people buy life insurance without doing the proper research or exploring all potential scenarios. Contact a Weitzel Financial Services, Inc. representative to sit down and assess your life insurance needs and evaluate the viable coverage options.
As the baby boomer generation ages and looks to the future, many individuals have begun to search for options to cover, or at least supplement, the ever-rising costs of long-term care. One option may be through the purchase of long-term care (LTC) insurance. LTC insurance can potentially provide valuable support and financial resources that may help cover the cost of long-term care should you need it.
By helping to protect your assets and giving you choice and control over where you receive care, including in your home, long-term care insurance may be an option to help you and your family plan for the future. Contact a Weitzel Financial Services, Inc. representative for an in-depth discussion of whether LTC insurance may be an solution for you.
Disclaimer: Weitzel FInancial Services, Inc. is a Registered Investment Advisor offering advisory services in the state of Iowa and in other jurisdictions where exempted. This communication is designed for informational purposes only. It is not intended as investment advice or as an offer or solicitation for the purchase or sale of any security or financial instrument. See Disclosures for further details. Securities products and services are offered through Weitzel Financial Services, Inc. (member FINRA).