Why Should You Consider Insurance Now?
There are three main reasons why it may be a good idea to consider purchasing life and/or disability insurance at this stage of your life.
Policies are typically less expensive to buy when you are young and healthy.
You'll want to maintain the financial security you're starting to create, should something unexpected happen.
You don't want to burden your family with having to fulfill your financial obligations, such as student loans, in the event of an accident or a disability.
Life insurance is one option you might consider purchasing. The amount you need depends on various factors, including your debts and whether you would need income replacement to support a family in the event of your death. While there are many different types of line insurance, at this stage in your life, term life insurance might make the most sense for you.
Term life insurance is the most basic type of insurance. If you purchase it, you will be covered for a specific time frame, such as 10 years, 20 years, etc. Benefits are only paid if you die during this time period. And if you stop paying premiums, coverage ceases.
The insurance proceeds are paid to the beneficiary, or beneficiaries, free of ordinary income tax at the time of death.
The policy owner may cancel at any time.
Disability insurance offers income protection. Should sickness or an injury prevent you from working, you will receive a monthly benefit to replace lost income. Several types of disability insurance are available: short-term, long-term, employee and individual.
Short-term disability coverage typically lasts between 10 and 26 weeks. If you think you may be unable to work for a longer period of time, we recommend that you consider purchasing longer-term disability coverage.
As an employee, you might already have some disability coverage through your employer's group plan. In most cases, this policy type replaces a significant percentage of your income for approximately three months. However, the benefit might not be adequate enough to cover your needs if you become disabled, especially if it is subject to income tax.
An individual policy provides portable protection. This means you won’t have to worry about losing coverage if you change jobs.
Protecting what you work for is always going to be an important part of your life, so why not get a jump start on it now? Please call (517) 669-8817, stop by my office, or visit https://www.edwardjones.com/