Wisconsin Life Insurance
Coverage for your most precious asset.. you!
Life insurance and annuities are an important part of everyone’s financial plans, but the questions are how much? And what kind? Your Rural Mutual agent has the experience and the products to help secure the future for you and your loved ones. Reach out to Paul Glasheen, Regional Financial Consultant from Farm Bureau Life Insurance Company for specific questions about financial products and life insurance.
*Life insurance and annuity products offered through Farm Bureau Life Insurance Company. See your Rural Mutual agent for more info about these products.
How to Choose the Right Life Insurance
The coverage you buy today will protect the people you love long after you are gone. More than a death benefit, depending on the coverage you choose, your life insurance could protect you while you are still living, and be a vital part of your retirement plan.
With so many coverage options, how do you choose the policy that is right for you? Once you know the basics, we have outlined some of the most common considerations people use when choosing a policy below.
When to consider Life Insurance
Every situation is different. Generally, you should purchase life insurance if you have dependents, or are responsible for primary care of your loved ones. If your family depends on you, you can protect your family’s future with life insurance that will provide financial security after you are gone.
You should also consider purchasing life insurance if you have outstanding debts (like a mortgage) that would go to a co-signer or spouse. If you own and operate a business, life insurance could provide an immediate cash payout, which would assist while transitioning business accounts. Many people also consider leaving a portion of their life insurance to a favorite cause or charity.
Young or old, how much do you need throughout life? The answer isn’t always easy, and it changes as you change. Learn more on what life insurance coverage you need during each decade of your life.
How Much Life Insurance Do You Need?
Consider how many dependents you have, what their future education expenses might be, how much outstanding debt you have, and your current lifestyle. In general, many people look to buy a policy that is worth five to ten times their annual salary. Does that sound like a lot? Consult with your agent to ensure you have the right level of coverage for the needs of your family.
Types of Life Insurance Policies
Each type of life insurance has some unique characteristics and knowing about what makes them different will help as you decide on the best option for you.
Term life is generally the most affordable life insurance option. As the name implies, the insurance is good for a specific period (usually 10, 20, or 30 years). The term life policy does not gain cash value and cannot be used as an asset.
Whole life insurance, also called permanent insurance, offers lifetime coverage that does not expire, and builds cash value over time.
Universal Life is a form of permanent insurance, but generally offers greater flexibility than whole life policies.
Long Term Care
Conserve your life savings and assets in case you require costly, long term care. Your Rural Mutual Insurance agent will help you get the protection you need.
Protect your greatest asset—your ability to earn a living. Disability insurance helps assure you and your family retain the resources needed to cover living expenses if you become disabled. Your Rural Mutual Insurance agent will help you get the protection you need.
*Long Term Care and Disability Income insurance policies are underwritten by a variety of insurance companies that are not affiliated with our company. See your Rural Mutual agent for more info about these products.
How to Choose the Right Policy
With so many options, choosing the right life insurance policy can be confusing. We’ve compiled some common considerations:
Consider term insurance if:
- You need a short-term solution and need insurance for a specific time period. For example, if you have young children and want to ensure they will be able to afford their education if you pass away, a term policy might be the ideal solution for your family.
- You have a limited budget but need coverage. Term insurance is generally the most affordable form of life insurance, but still provides excellent coverage benefits if something happens during the policy term limit.
- You are looking to lock in your insurability while you are young. Many term policies include an option to convert to a permanent life policy without additional medical examinations when the coverage term nears its end.
Consider permanent insurance if:
- You need insurance for as long as you live. Because coverage remains steady over time, whole life policies allow the security of knowing you are covered.
- You are looking to invest in a product that grows and matures over time. Because you can build equity with permanent life policies, they can be considered an asset.