The life Insurance General, Richard Wesselt talks about Two Types Of Life Insurance

Term life insurance and whole life insurance for someone who has never purchased life insurance before, I like to consider term life insurance as you would renting and apartment. Typically, the rent is cheaper than a mortgage but at the end of the game there is no cash value and no equity.

Term insurance unequivocally solves a temporary need and should be purchased at roughly 20 to 30 times the person’s income, which is called human life value.  That allows you to have enough coverage that if someone were to pass away prematurely, the interest off the death benefit would replace their income.

For example, a 40-year-old who makes $50,000 a year should have approximately $1,000,000 of insurance. If he or she passes away, the survivor can take the million dollars, tax free and at a 5% interest rate, kick off $50,000 a year income. The client has now properly secured protection for his/her family and leaves $50,000 behind, which was his/her income when they were working.

The second type of insurance is called “whole life insurance”.  It’s designed to last for someone’s whole life. Richard Wesselt says  It allows a client to accumulate money on a safe secure basis, while still having protection for the family.

In the office we help clients to acquire this type of coverage, with no additional out of pocket outlay and no additional risk.  A very unique set of circumstances which has made many of our clients happy, allowing them to go through their existence feeling safe and secure. In conclusion, the most important time to buy life insurance is when you’re younger and healthier and can qualify.

The policy itself will let a client pass on assets on to the next generation, and leave a legacy for many years to come.

Leave a Reply

Your email address will not be published. Required fields are marked *

Post comment