No one likes to think about life insurance, and no one likes to pay the monthly premiums, but most adults in Colorado are responsible enough to have life insurance.
The real trick is to find a policy that works for you and your family and doesn't cost too much.
First, you need to know how whole life insurance is different from term life insurance.
Whole life insurance lasts as long as you pay your monthly premiums, no matter how long you live. The premium rate in effect at the time you sign up for the policy is the premium rate you pay until you die.
Term life insurance lasts for a certain number of years, after which you have to buy a new policy at a higher price based on your age.
Most of the time, the premium for a whole life policy will be more than the premium for a term life policy. Whole life insurance is better than term insurance because the premium doesn't go up as you get older. Instead, the premium goes up at the end of each policy term.
Another benefit of whole life insurance is that a portion of your monthly premium usually goes into a savings account that is built into the policy. This "cash value" part of your insurance policy can grow into a lot of money over time and can even be used to borrow money.
Which will help you and your family the most? This is a question only you and your insurance agent can answer, but no matter what you decide, there are things you can do to keep costs down.
In Colorado, the main things that affect how much life insurance costs are your age, your gender, your health, and what you do for a living. Not surprisingly, your premiums will be lower if you are younger, healthier, and have a safer job. Since women live longer than men, on average, they pay less for their insurance.
Compare prices. Prices vary from company to company, and the Internet is a great place to compare them side by side.
Get coverage right away. With each birthday that goes by, your premiums will go up.
If you smoke, stop. People who smoke always pay more for their insurance. If you drive a high-performance, risky sports car, you might want to trade it in.
Life insurance is meant to protect those who are left behind after someone dies, but paying the premiums during your life doesn't have to send you to an early grave.
