term life Archives - Spencer Insurance Agency, Inc

Whole Life Insurance VS. Term Life Insurance

Shopping for life insurance may not be as fun as reading a good novel, but it is something everyone should do – sooner rather than later. There are two popular types of life insurance: term life insurance and whole life insurance. While the death benefits from both can be similar, there are a few key differences between them.

Family Cooking Kitchen Food Togetherness Concept

Term life insurance is perhaps the easiest to understand. This straightforward insurance is purchased for the simple promise of a death benefit for your beneficiary should you pass away while it’s in force. Term life insurance only lasts for a certain period of time, whether it is 10, 20 or 30 years. After the term is up, the policy expires. One benefit of term life insurance is it tends to be the most affordable option. If all you seek from a life insurance policy is the ability to protect your loved ones when you die, term life insurance is likely the best fit for you. Basic protection is better than no protection at all.

Whole life insurance is a form of permanent life insurance. Meaning that if you keep making your premium payments, it will never expire. Whole life insurance also provides some “cash value”, which can be a source of funds for future needs. Your premiums are split in two ways. One part of your payment goes to the insurance component, while the other part helps build your cash value, which will grow over time. At a later date you can borrow or withdrawal from your cash value amount for things such as your child’s college tuition or repairs to your home. However, should you withdrawal or borrow from your policy, your death benefits will go down by a corresponding amount if you don’t pay it back.

So which option is better for your family? Life insurance can be confusing. What’s right for one family, may not be right for yours. Spencer Insurance Agency, Inc. will be happy to help you with any questions you may have and provide you with a free quote. You can give us a call at (215) 885-2200 or visit us online at https://spencerinsurance.com/ to get in touch with one of our experienced representatives.

Source: https://www.investopedia.com/term-life-vs-whole-life-5075430

What is keeping you from getting Life Insurance?

Facts from LIMRA:

  • Three in ten American households are uninsured and half say they need more insurance.
  • More than half of Gen X and Y households need more life insurance.
  • One-third of wives own no life insurance at all – despite the fact that 7 in 10 households are dual-income households and nearly 30 percent of wives earn more than their husbands.

 

Why should I review my life insurance policies?

  • You quit smoking.
  • You heath has improved.
  • You recently married, had a child, bought a house, divorced, downsized or are considering retirement.
  • You have a partner or a key employee in your business.
  • You have coverage through your employer

 

Are you relying on the life insurance that your employer provides?

Note: Open enrollment for most employers is happening soon.  Contact us now as it can take 6 to 8 weeks for your life insurance to be approved.  Compare and apply now before you need to commit to your employer’s plan for another year!

  • If you are having premiums deducted from your paycheck for life insurance provided by an employer give us a call to review the cost of that policy
    • You will find the rates change, usually every 5 years, and can become very expensive as you age.
    • Many times we can provide you the same coverage for less than you are spending now or provide more coverage for the same amount you are spending now.
    • Major problems with employer coverage
      • Price increases as you age
      • Not portable, meaning if you change jobs you may lose your life insurance.  What happens if your health has changed and  can’t get life insurance or purchasing life insurance on your own is now very expensive?

 

Solution: Call us for a review of your life insurance needs. Today’s economy has demonstrated how precarious a family’s finances can be.  Think how tough it will be for your family if they lose your income!  Don’t procrastinate; we all think we are invincible.  Go to our website and read Rachel’s story.  Her story which she was so kind to share with me will demonstrate why you can’t wait.  Check out our website for more information about Life Insurance.

Getting Married? Wedding Season is Coming!

(Charlie’s family at Laura’s wedding in November)

Here is an article I wrote for our website.  Last November my daughter was married and this July my son Brian is getting married.  So I gathered some information to help newly engaged couples plan for their big day.

If you know someone planning for a wedding pass this along to them.

Congratulations on your engagement!

What do I do now that I am engaged?

  • Insure your engagement ring
  • Plan your wedding ceremony and reception
    • Search the web for sites that help you plan your wedding. Ask people you know who were recently married how they planned their wedding.
    • Purchase Wedding Insurance – Most people don’t know you can insure a wedding. Check with Spencer Insurance Agency to get this valuable coverage for under $300. Reasons to insure your wedding. . .
      • Protects you from losing your deposit should the venue for your wedding go bankrupt.
      • Protects you from losing your deposits should you not have the wedding due to sickness, weather and other factors. Sorry, no coverage for “Cold Feet.”
      • Protect your wedding gifts from theft the day of the wedding.
      • Consider other reasons, the photographer goes bankrupt, your wedding dress is not delivered on time.
  • Review your finances with your future spouse and a financial planner
    • Discuss how you will handle your finances once you are married.
    • Discuss your current assets with each other and decide how to protect them.
    • Be aware of what you will need to do after your wedding day.
    • Spencer Insurance Agency works with many financial planners and can recommend one if necessary. We are not CPAs or lawyers and do not provide legal advice. We suggest you consult your accountant, financial planner, lawyer and other professionals as you take this big step.

What do I need to do after I get married?

  • If you are changing your name. . .
    • Check your documents and change your name on:
    • Social Security Card – You will need to do this first so you can change your name on other identification.
    • Driver’s License
    • Other Identification
  • Notify your employer
    • Change your Federal withholding status if necessary
    • Review your Group Health Coverage
    • Tell your creditors, utilities and other vendors of your name change
    • Discuss your name change with your doctor and see what needs to be done to have your spouse pick up a referral or prescription for you. You may need to sign a form.
  • Update your benefits and beneficiaries
    • Review all your life polices, group and individual
    • Check the beneficiaries listed on your retirement accounts
    • Since marriage is a life changing event, you may be able to make changes to your group benefits. Check with your HR department or employer.
  • Review your insurance policies to make sure you are getting all the discounts you are entitled to receive

Call Spencer Insurance Agency at 215-885-2200 for a no obligation Insurance Review. Make sure you have all your bases covered now that you are married.

Do you have any tips for newly engaged couples?

Comment below and let us know how your wedding plans are going!