Santa Cruz Life Insurance
Serving the Santa Cruz County Community
Purchasing a life insurance policy can be difficult. Most of us do not want to consider that we may lose our lives, and not be here with our families. The purpose of life insurance however, is to help your family be financially stable in the event of your absence. The money can be used in a variety of ways. For example: College tuition for your children, general living expenses, and rent or mortgage costs.
The two main types of life insurance are: Term and Permanent (AKA: Whole Life/Universal Life).
Term life insurance offers you life insurance for a specific terms; 10 year, 20 year, and 30 year terms. They offer the greatest amount of coverage for a lower premium. The benefit is paid only if the death occurs during that time period.
Permanent insurance (Whole life/Universal Life) Permanent life insurance is considerable more expensive. Only a small portion of the premium is for the cost of the insurance. The balance of the payment is lumped into a fund where it accumulates. The policies can have tax benefits, and the accumulated value may be borrowed against.
As a simple rule of thumb your life insurance benefit should be 5 to 10 times your current income. Some important factors to consider are your marital status, the ages of your children, and your financial obligations, like your mortgage and car payments. You should also consider the lifestyle to which you have become accustomed and factor in those costs. Life insurance is not one of those decisions that should be taken lightly please consider calling Kim or Candace directly to discuss your specific needs.
Don’t forget that you are also entitled to multi line discounts that will reduce your overall monthly insurance premium. The life insurance policy will reduce your other farmer’s policies as well.
Call us today for a free quote.