When a 31-year-old man went for a motorcycle ride one day, he struck a tree and died. One month earlier, he had purchased
life insurance and $300,000 in proceeds were provided
to his wife and two children.
You know you need life insurance. Now you need to know which policy fits your life. Permanent insurance? Term insurance?
You don’t have to be confused, says State Farm agent Dave Kessler.
There are two different types of life insurance policies to consider. Term policies offer coverage for a certain number of years, with premiums on most staying the same for the policy terms.
The second type is a permanent policy, which offer coverage
as long as you live. Two options are available — whole life and universal life. A whole life policy can develop cash values that are tax-deferred, while premiums stay the same every year.
For a universal life policy, premiums and coverage are flexible.
Any growth in an account value is tax-deferred as well.
When choosing between the policies, you must keep your budget and expenses in mind. If you only need temporary protection, consider a term policy. But if you’re planning far ahead, you may want to consider a permanent life policy.
Whichever one you choose, life insurance proceeds can help beneficiaries through a difficult intersection in life. Contact
Kessler at 636-462-4670 or visit davidkessleragency.com to learn more.
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