How to Choose a Life Insurance Policy That Grows With Your Family

As you start your family and take on new responsibilities and reach new milestones, each comes with new responsibilities. Life insurance can be a great way to help make sure your family is financially secure after your passing. However, choosing a policy that fits your needs and grows with your family is important.

Here are some steps for determining the right life insurance policy for your family:

Step 1: Understand the different life insurance policy types.

There are two types of life insurance policies:

• Term life insurance provides coverage for a set period, such as 10, 20, or 30 years. It typically costs less than permanent life insurance policies.

• Permanent life insurance offers lifelong coverage and builds cash value over time.

Step 2: Determine your coverage needs.

Your policy should take into consideration your current and future financial responsibilities, such as the following:

• Mortgage or rent payments

• Childcare and education costs

• Living expenses

• Outstanding debts

Step 3: Regularly assess your coverage.

It’s always important to revisit your life insurance policy after major life events, such as buying a house or having children. You may find that your current plan may not cover all your new financial obligations, and you may want more coverage. Many people switch from a term to a permanent life insurance policy as their financial commitments increase.

With permanent life insurance policies, a cash value option can act as a tax-deferred investment account that grows over time and can be accessed while you’re still alive.

Contact Us

Choosing the right life insurance policy for you and your family is a great responsibility. The team at ABC Insurance & Financial Services in Tucson, AZ can review the policy options available to you and help you select the best coverage for your needs and budget. Contact us today for more information.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.