The question always comes up when discussing a family’s life insurance needs, “whole life or term”? For the 95% of families that need to secure “income replacement” life insurance coverage the answer is unequivocally TERM coverage. These families don’t need the cash accumulation and low face value permanent insurance, they need as much death benefit for the least amount of monthly premium. A young family needs to protect the children’s financial future in case of a premature death of one or both parents until those children are grown and on their own.
Nothing can accomplish this better than term life insurance. It’s by far the least expensive and you can purchase the coverage for a pre-determined period, typically until the youngest child is 23-25 years old. A widely used formula to determine an adequate amount of coverage is to multiply the proposed insured’s annual income by the amount of years until the youngest child is grown. For example if Dad earns $75,000 per year and the youngest child is 2 years old you would multiply $75,000 by 23 years (time until they are 25). This would come out to $1,750,000 in face value life. The difference in cost between permanent (whole life or universal life) and term for this amount can be substantial.
Another example for a 30 yr old male the premium could be more than $2,000 per month for a universal life plan versus less than $100 per month for the same $1,750,000 death benefit with a term policy!
Just Us Insurance is located in Southern California.
We proudly serve businesses and local residents in Corona, Murrieta, and Temecula.
Just Us Insurance operates throughout Riverside, San Bernardino San Diego, and Orange Counties
