This time of year, we reflect upon past events, plan for the new year and the years ahead. 2021 continued to remind us to value our time with our family, friends and pets. It taught us to be more cautious about our health and the health of those around us.
For almost 20 years, Chris and I have been providing businesses with top-tier, custom employee benefits, and we spend a lot of time focusing on people’s physical and financial well-being.
As you might expect, the pandemic prompted a renewed interest in life insurance. One of the primary triggers for purchasing life insurance occurs when someone we know passes away, especially if that individual is young and leaves behind a family. Before COVID-19, we saw the effect in 2020 with the death of basketball legend Kobe Bryant. The volume of life insurance application requests and submissions spiked by over 50% in the days after the 41-year-old’s death on January 26, before returning to normal levels within a week.
Love & Life
The basic premise of life insurance is simple: Life insurance provides the opportunity for individuals to protect their loved ones financially should they pass away. Life insurance gives you peace of mind while you’re alive and financial support for your loved ones when you’re gone. You should have life insurance if there are people in your life depending on you for everyday living expenses, college tuition, or retirement income. Life insurance can make a huge difference for you and your family, not just financially but emotionally, too.
Types of Life Insurance
There are two main types of life insurance: term life and whole life/ permanent life. The best one for you depends on your needs and may even be a combination of products.
Term life insurance is the simplest form of insurance and provides a death benefit for a set period only if death occurs during the term of the policy. Most people start with this type of insurance.
Whole life/permanent life insurance is an umbrella term for life insurance policies that do not expire. Typically, permanent life insurance combines a death benefit with a savings portion.
Layers of Life
There are more complexities to consider about life insurance, whether you seek information for your employees or yourself. Life insurance is not a one-size-fits-all purchase, and it’s an essential part of your overall financial plan. If you have questions about life insurance, we’re here to help.