Mylo's quick guide to life insurance

Some fast facts about helping the people you love maintain their quality of life when you're no longer around. (For as little as a few dollars a day.)

WHY DO I NEED LIFE INSURANCE?

If you don’t usually think about life insurance, that could be a good thing. It probably means you’re healthy – the right time to shop for it. But whatever your life stage or budget, life insurance could be a good idea for you.

Why? Here’s the simplest explanation:

Life insurance keeps your loved ones from dropping behind financially if something happens to you.

For as little as a few dollars a day, you can help your family maintain their standard of living.

Because life insurance usually pays out in one lump sum:

1. Your loved ones won’t have to cover the immediate high costs of funeral, burial, cremation and other services (the average cost of a funeral is $7,181, and usually these payments are required up front).

2. Your loved ones will have the resources to handle ongoing expenses like mortgage and taxes, child care, school/college tuition and more. Whether you’re a breadwinner or a stay-at-home parent, you’re making valuable contributions every day that add up to a better life for your loved ones. Do you want that to continue?

By the way, if you’re getting your life insurance from your employer, double-check what your coverage will pay out. In many cases, the amount won’t be sufficient. Also keep in mind that if you leave your job, your insurance usually won’t go with you.

WHAT TYPES OF LIFE INSURANCE ARE THERE?

Here’s a quick guide to help you untangle the terminology:

Term Life covers you for a limited number of years (or “term”).

• The most affordable option if you're young.
• If you want to cover expenses that will only last for a specific amount of time (such as starting a family or paying off a home), a Term Life policy is the most affordable way to ensure that they’ll get paid without you.
• Depending on your health and other factors, you may be able to extend the term of your policy after you complete it.

Whole Life covers you for your whole life.

• Provides a guaranteed cash benefit at the time of your death, no matter how long from now that is.
• If you’re young, a Whole Life policy may cost more than a Term Life policy, but the good news is: your premium won't increase as you grow older.
• Think about this: you may need less of a huge payout as you grow older and your cost of living decreases. So one option is to purchase a Whole Life policy with less coverage (because you plan to live a long life and pay off your debts) and an additional Term Life policy (to cover your current expenses just in case).
• Something else to consider: Whole Life policies accumulate cash value over time, and you might be able to secure a loan with your policy to back it.

Universal Life is similar to Whole Life, with flexible premium options.

• These policies also accumulate cash value, and you can use the cash you earn to help pay your premium. Or you can let the cash accumulate.
• Some policies also allow you to increase or decrease coverage benefits to match your circumstances and budget.

Accidental Death can be purchased by itself or as an add-on.

• When added to your primary life insurance policy, it doubles the benefits paid out for deaths caused by an accident.

All of this is just intended to get the conversation started. To get a recommendation customized to you, you’ll want to talk with a licensed agent.

Mylo can help you secure a plan that protects your family’s future! Call the friendly agents at Mylo for a free life insurance consultation.

Let's Talk!