The Life Insurance “Blend”
Term Life Insurance and Permanent Life Insurance
Sometimes insurance agents can be so opinionated about term and permanent life insurance that they miss the right solution for the client. There are a lot of insurance agents who believe term life insurance is the only policy people should purchase, and then there are a lot of insurance agents who believe people should only purchase permanent life insurance. The bottom line… both can actually be the best fit.
Term life insurance is great for temporary needs, such as one, five, ten, fifteen, twenty, or thirty years. If the personal only needs coverage for a certain term period then term life insurance is a great option.
Permanent life insurance is great for people who would like to guarantee their policy will last until they die or to supplement income in retirement. These policies can also be used in the event of a chronic illness if the insured cannot perform two out of six activities of daily living or cognitive impairment, policyowners can accelerate the death benefit and receive cash to pay for whatever expenses they want.
When people are properly educated on the benefits of both term and permanent life insurance, often times they will choose both. For example, a forty-five-year-old male might want a 1-million-dollar term policy for twenty years and a 500,000 permanent policy that they will be guaranteed for the rest of their life. The thought process is along the line of knowing at age sixty-five they will most likely have enough saved in retirement accounts, investment accounts, and home equity, so if they pass away during their working years the term insurance is there to replace the missing income they would have earned. The permanent policy is generally purchased because they want coverage to continue until they pass away for estate liquidity. Permanent life insurance also gives the policyowner the ability to access the policy’s death benefit in the event of a qualifying chronic or critical illness. Furthermore, the policy owner will typically have the ability to access cash value in the event they want to supplement retirement or for whatever they want.
If you would like to speak with an independent life insurance who has your best interests at heart and give you unbiased life insurance options, you can reach out and speak with a life insurance expert at Pacific Insurance Group by calling their Bellevue Washington office directly at 425-246-4222 or visit https://www.pacificinsurancegroup.com/