It has been said that love is a verb, and though it may not seem as romantic as a box of chocolates, a dozen roses, or a candlelit dinner in Paris, one of the best ways to love the people you care about is through properly protecting yourself, them, and everything you care about with the right insurance. But how do you know what you need? Here is an easy way to understand which insurance does what.
1. For My Whole Life
Life insurance exists first, and foremost, to protect the people you love at the end of your life. That makes "whole life” insurance easy to remember. If your payments stay current, you're covered for life, and you can count on a guaranteed amount of money going to your heirs. There's another reason to make this kind of policy your sweetheart: it builds cash value you can use over your lifetime and—like marriage—gives you a break on taxes. Another benefit of whole life insurance is the premium cost. Like true love, the premium amount will last forever, rather than fluctuate over time.
2. For a Term…But Not Forever
Term life is a simple product that burns bright, but only for a set length of time, making it a great choice if you're on a tight budget for your insurance needs. (It’s the pre-packaged box of chocolates from the drugstore, not the hand-selected kind from the boutique.) Decide how many years you want the romance to last—10, 15, 20, or 30—and your loved ones receive a guaranteed amount if you're not there. Later, you can decide to "tie the knot" and convert your policy to whole life insurance, building a tax-advantaged cash asset.
3. Disability to Get You Through Tough Times
Most people think catastrophic accidents are the reason to have disability insurance. Truth is, 90% of people are struck by illness, not injury*. Catastrophic disease like cancer or multiple sclerosis is far more likely to have an impact. It’s important to note that standard disability income insurance provided through your employer might cover only 40% to 60% of your pre-disability salary. If you want to be fully protected, supplemental disability income insurance can cover the balance, and maybe even your bonus.
4. Don't Kiss Your Small Business Goodbye
You're passionate about your business, and those around you rely on your ability to keep it going. Small business protection can reimburse you up to 100% of covered expenses, like rent and utilities. In addition, it may cover the maintenance payments for any existing loans that you use to run your business up to 100%.
5. Individual Dental for a Charming Smile
Though it may not protect your loved ones, while you’re happy in love, you’ll want a smile that’s as bright and beautiful as you feel. See how that works?
So go ahead, don’t be shy. Show your love with a heart-shaped box. Just make sure it’s full of the right kind of coverage.
Insurance policy guarantees are subject to the timely payment of all required premiums and the claims paying ability of the issuing insurance company. Policy loans and withdrawals affect the guarantees by reducing the policy’s death benefit and cash values. This material is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Consult a professional regarding your individual situation.
Brought to you by The Guardian Network © 2017. The Guardian Life Insurance Company of America®, New York, NY.