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Is it time for a life insurance checkup?

If you don’t have any life insurance, you’re not alone. Life insurance is one of those “someday” things for many people – but the cheapest time to buy it is probably today.

There are two kinds of life insurance: term and permanent. Additionally, there are three kinds of permanent life insurance: whole, universal, and variable.

How do these forms of life insurance differ, and how do you find out which type of coverage is right for you?

The way to find out is to look at where you are in life, so that you can assess your current insurance needs. Have you reviewed your insurance lately? Don’t think you need life insurance? If so, consider the following potential factors that may make it a good idea:

  • You have a spouse or partner 
  • You have children 
  • You have an aging parent or disabled relative who depends on you for support 
  • Your household depends heavily on your income 
  • Your retirement savings or pension won’t be enough for your spouse or partner to live on should you pass away 
  • You own a business, either solely or with partners
  • You have a substantial joint financial obligation, such as a personal loan for which another person could be legally responsible after your death

In any of these circumstances, you may require life insurance. If you have coverage, changes in your life may demand an update.

The affordability of life insurance may surprise you. Many people think it is expensive, and so often, it is not. The non-profit insurance education group Life Happens recently conducted a study about this and found that people think life insurance costs three times as much as it actually does. The reality: a 20-year term life policy with $500,000 in death benefits can cost you less than $50 a month.2,3

Life insurance is intended to help your loved ones financially after you die. The proceeds from a life insurance policy may help your spouse, partner, or family members manage finances if they have to adjust to life without your income. The death benefit may also be used to meet funeral costs and other final expenses, which may run into the tens of thousands of dollars.

Are you still unsure about buying life insurance, or do you suspect that your current insurance coverage needs to be updated? 

1. Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

2. LifeHappens.org, 2021

3. ValuePenguin.com, 2021
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.

We can help you evaluate all the factors and help you choose an appropriate policy.

Kyle Jablonski 

Kyle Jablonski 

Kyle has over ten years of experience in the Life Insurance Industry. He started as a Life Insurance Agent and moved into Product Information and Case Design at National Life. He is a Registered Representative and working on becoming a fully registered Financial Advisor. He'll use his multiple talents and knowledge base at Client Centered Financial. 
Email Kyle @ jablonski_kyle@nlgroupmail.com

Kyle Jablonski is a Registered Representative of Equity Services, Inc. Securities and investment advisory services offered solely by Equity Services, Inc. Member FINRA/SIPC,354 Mountain View Drive, Suite 200,Colchester,VT 05446,802-864-6819

Kyle offers securities in Vermont and is licensed to sell insurance in Vermont.

Nolan Streeter 

Nolan Streeter 

Nolan Streeter joined Client Centered Financial in December 2022. Initially he managed Dan Streeter's schedule for Financial Planning. He obtained his Life Insurance License in November 2023 and is focusing on Servicing and selling Life Insurance and Annuities. Email Nolan at Nolan@ccf-vt.com. 

What are the different types of life insurance?

Types of life insurance generally fall into two categories: term life insurance and permanent life insurance.

Term life insurance

Term life insurance provides protection for a specific period of time (the term). This is often 10, 20 or 30 years. Term life insurance makes sense when you need protection for a specific amount of time--for instance, until your kids graduate from college or your mortgage is paid off.

Term life insurance typically offers the most amount of coverage for the lowest initial premium. This makes this type of life insurance policy a good choice for those on a tighter budget.

Permanent life insurance

Permanent life insurance provides lifelong protection for as long as you pay the premiums. It also accumulates cash value on a tax-deferred basis, which you can tap into to buy a home, supplement your retirement income, cover an emergency expense and more.

Because of these additional benefits, initial premiums are higher than what you’d pay for a term life insurance policy with the same amount of coverage.

You Might Want a Mix

Depending on your circumstances and financial goals, sometimes a combination of term and permanent insurance is the answer.