A Guide to Planning with Florida Life Insurance

If you are considering the purchase of Florida life insurance, you should view it as an investment and a means of protecting your family rather than an obligation or just another bill to pay. The following guide will help you plan for your future as it pertains to life insurance.

Term vs. Permanent Life Insurance

The first decision you will need to make is whether you want to purchase term or permanent life insurance. There are several differences to consider but, in the long run, the differences are easy to understand. Term life insurance is a great option for young people who need lower premiums, but the premiums will rise as you age. Permanent life insurance is more expensive, but the premiums will not increase as you age and the policy will gain cash value over time. You can even borrow against the cash value of your life insurance policy in the future.

How Much Insurance Do You Need?

After you have decided whether to purchase term or permanent insurance, you’ll need to decide how much Florida life insurance you will need. There are several factors that you will need to consider, and your insurance agent can help you calculate the best option for your individual situation. In general, young, single individuals who have no dependents can get by with a minimum amount of insurance. However, individuals who are married or who have children will need more insurance since these individuals will need ongoing financial support.

Adding More Insurance

No matter what sort of insurance policy you choose now, or if you already have insurance that you feel may be inadequate for your needs, you may be put in a position to decide whether or not you need to add more. Inflation is a huge factor when it comes to Florida life insurance, so if you purchased a policy in 1990 for $100,000, you may want to decide whether or not that $100,000 will still be enough in 2013 with the rising costs of just about everything. Similarly, if you have had another child, gotten married or even gotten divorced, you may need to make some changes.

Future Planning

When you go to purchase a life insurance policy, you are likely just thinking about planning for immediate expenses that may occur in the event of your death. However, if you have a family, you need to think about how they will be supported without your income. If your children are young, you will need to think about how long your life insurance money will need to support their needs. Finally, your permanent life insurance policy may be able to provide you with enough money to help pay for a child’s college tuition, place a down payment on a house or even start a savings account for a loved one.

Florida life insurance should never be viewed as another obligation to pay every month, and you should never go with simply the ‘bare minimum’ in order to save money. You should sit down with your insurance agent and discuss your needs—both now and in the future—in order to determine the right type of insurance and the amount that will best suit you.