The Two Main Types of Life Insurance

There are two main kinds of life insurance, and each has its own benefits and drawbacks. The life insurance that you choose often comes down to what you want in a policy and how much you want to spend. It’s important to have life insurance so that you have something to leave to your loved ones to help them to manage after you’re gone. When it’s time for you to get life insurance, give us a call at Manzanita Insurance in Prescott Valley, AZ to learn more. 

The Two Main Types of Life Insurance

Whole Life Insurance

This type of life insurance is great for those who want to keep their life insurance for the rest of their lives. With this type of policy, it can’t be canceled by the company as long as you keep on paying for it as agreed. The main disadvantage is that it costs more than other life insurance, but it never expires. Over time, it will also build up a cash value. With the cash value of your policy, you can borrow against it when you need to. Many people find that this gives them extra peace of mind knowing that this money is there for them if they should need it. 

Term Life Insurance 

This kind of life insurance works much differently. This kind of policy stays in effect for a specific amount of time and then expires at the end of it. This is a drawback for many people, but it comes with the advantage of costing less. It’s often an affordable way to get life insurance that many people find fits their budget. 

Cover Yourself With Life Insurance

If you don’t have life insurance, you need to have this protection for the sake of your loved ones. To get started, call us at Manzanita Insurance in Prescott Valley, AZ.

How much life insurance is enough

When determining how much life insurance is enough, many things come into play. No two people will come up with the same answer. It is a personal figure that will suit your individual needs. At Manzanita Insurance in Prescott, AZ, we are independent insurance agents who provide our customers with better selections and more choices. We are locally owned and understand the local market. We work with multiple carriers, which helps us to customize your policy to your needs.

Determining factors:

Age

Your age is an important factor in determining how much life insurance you need. If you are young or old, you will likely need less life insurance than someone who is in the prime years of their life. 

Dependents

The person or persons who depend on your income is an important factor in determining how much life insurance is enough. When you are young you probably won’t have anyone who counts on you other than yourself. When you are elderly, you most likely won’t have a lot of dependents. It is in your prime parenting years that you have the most pressure to provide for children and maybe even your spouse or significant other.  

How long dependents need support

Another very significant factor is the age of your children. Once they are grown, you will not need to supply as much support. If they are young, they need total support. When your children are very young, the length of time could be as much as 20 years. 

Salary

Those in the know suggest that you provide between seven and ten years’ worth of your salary in life insurance. Depending on what your salary is, that can be a significant amount of life insurance. Being able to afford to keep that much life insurance requires working with a knowledgeable independent life insurance agent. In Prescott, AZ, there is Manzanita Insurance.