We at Rocky Mountain Insurance Center believe life insurance is important, so we’re going to run a 5-part series about life insurance basics. If you’ve ever been considering life insurance, this series is for you. And if you have any questions about it always feel free to call us at 720-335-6872. As your insurance brokerage we have access to 80+ life insurance companies and can help you find an affordable policy to cover your loved ones in the event you or a loved one would unexpectedly pass. It’s not the most pleasant of topics but it’s one we need to discuss. So again, any questions you might have please give us a call. Sherico and Steve are both licensed with life insurance and can help.
Here's the topic for our first week: Why life insurance matters.
Life insurance is a tax-free payout (called the “death benefit”) that goes directly to your beneficiaries, which could be a spouse, the kids or the kids in a Trust fund, or other organizations. It could be used to pay off rent, pay off a mortgage, funeral costs, outstanding medical bills, credit card debts or fund major milestones such as college expenses. It can also be used to pay for lost income while survivors are going through the grieving process rather than being forced into going to work. In short, it’s flexible cash the survivors can use at a time when flexibility is needed most.
Life insurance is something everyone can use. The coverage level – or “death benefit” – may not be the same for everyone, but everyone faces the same ending with different circumstances. You can select any value for a death benefit based on the financial circumstances you have. Even single adults could use basic coverage to prevent untimely end-of-life expenses from falling on parents or siblings, or even to leave a legacy for causes they care about.
There are 2 major types of life insurance:
Term: coverage set for a set period of time or term. The most common terms are 10 years, 20 year and 30 years. Some companies offer 15 or 25 years. It’s typically the most affordable way to get a larger death benefit. It’s also like renting – you pay for only those years, and when the term is up, you walk away and no more payments are made.
Whole Life: sometimes called “permanent life,” as it’s lifelong coverage with potential cash value that can be accessed while you’re still alive. It’s a great tool but becomes costly the older you become.
Bottom Line: life insurance matters because real life is unpredictable. Death happens to everyone, even young people, and life insurance is one of the few tools that turns uncertainty into financial certainty and something your beneficiaries can count on. If you need help picking the right type of insurance and amount, we’re glad to walk you through it in plain English with no pressure. A 10-minute conversation can clarify a lot of details rather than spend hours searching online.
Ready to explore it? Call us at 720-335-6872. Share some of your goals with us (e.g., protecting family income, paying off a mortgage or other debts, legacy giving) and we’ll recommend options to you that respect your budget while maximizing peace of mind.
