Life Insurance in Illinois
Why Have Life Insurance?
Unfortunately, it's a reality of life that people die, and some do so sooner than they hope. Having life insurance can help those who are left behind with financial problems. A person gets life insurance in order to make sure there is money available to maintain the financial life of those they care about. If you have permanent life insurance, you may also build some cash value that can grow tax-free, which can give you the freedom to do some other things with your money. This can include investing while still having peace of mind that your family will be taken care of.
Choosing a Life Insurance Policy in Illinois
There are two types of life insurance in Illinois, permanent and term, and both have their own sets of pros and cons. An agent at Taake Insurance Agency in Columbia, IL can help you determine which is best for your situation. Permanent life insurance falls into two categories, also called universal and whole life. With whole life insurance, you pay a fixed premium for life, and the policies are designed and priced for you to keep the policy for an extended period. Universal life is also a permanent policy, but it doesn’t have the same guarantee that whole life insurance provides. Term life insurance means you pay for a period of time, and terms can range from one to thirty years. Once you finish the term, unless you renew the policy, the insurance is canceled, and these policies don’t build cash value. If you aren’t going to keep permanent life insurance for years to come, you could be better off with a different type of policy.
When determining how much coverage you need, you should have enough to replace the income you would have earned if you were alive to make it. The simple method is 10 to 15 times your annual gross income, but an agent can help you determine the amount.
Contact Taake Insurance Agency, serving Columbia, IL, to get a quote for life insurance.