Important Reasons to Work with a Life Insurance Advisor

Posted August 2, 2018

Important Reasons to Work with a Life Insurance Advisor

Life insurance may seem straightforward enough — you pay a premium so you’re your beneficiaries will receive a payment upon your death, thereby ensuring your loved ones can still be taken care of.

It can be complicated, however, by the diverse types of life insurance. While term life insurance policies offer insurance during a specified coverage period — for example, insuring against a death when children are young — permanent policies, such as universal life or whole life insurance, combine a death benefit with a cash value benefit that may supplement other retirement savings. Life insurance is not one-size fits all.

How should people make decisions about life insurance?

Clients should work with an advisor – one who is knowledgeable and who will uphold their obligation to put their clients’ needs ahead of their own.

You should understand that your needs will change over time. Meaning your life insurance needs will also change over time. A life insurance advisor can help you to navigate your best plan. For example, a young, unmarried person may be OK with a small amount of term life insurance (they have a more temporary need). A middle-aged professional with a family probably requires more coverage and might better benefit from a universal life or whole life plan (a permanent policy to build cash value). An empty-nester nearing retirement probably needs less coverage (the need is permanent but may not require any cash value).

Depending on life stage, your total death benefit might cover mortgage/debt, your children’s education, lifestyle expenses for at least a set period of time (possibly including retirement) and final expenses.

It’s important to fully understand how life insurance products work and how they can help you to achieve your long-term goals.

How can a life insurance advisor guide you through these options?

As a licensed life insurance advisor, we have experience in a wide range of life insurance products and have knowledge in how best to make them work for each unique need. Whether you choose a term policy or a permanent policy can depend on several factors; ones we have the know-how to build around.

Term life insurance is usually low-cost but will expire after a temporary period of time. A permanent policy is more expensive but will build cash value that can be used later. If your goal is to simply cover the worst-case scenario at the lowest cost, start with term. If you’re looking to build value over time, look to permanent.

The key is that life insurance should always be framed inside the overall plan, unique in each situation. Too often, the decision about life insurance is made without all things considered, which may lead to individuals being underinsured or even over insured, requiring unnecessarily high payments.

The specific question a life insurance advisor should ask, is: “What do you want/need your life insurance policy(s) to do for you?”

Consider Michigan Term, LLC as your best resource when considering life insurance.

Our goal is to find you the very best plan of action based on your own and unique need for coverage. With more than a dozen highly rated life insurance carriers to choose from, as well as our knowledge and experience in financial and medical underwriting, we can truly find YOUR best rate!