For many people, financial security is about having enough money in the bank to support a lifestyle or making investments in retirement accounts. While these are important aspects of financial peace of mind, purchasing life insurance is financial support that your family can depend on when you’ve passed on. Life insurance shouldn’t just be a consideration of those who are entering their golden years, as there are affordable policies that align with different age groups. Choosing an individual life insurance policy depends on several factors, and here’s your guide to understanding all the options.
The Importance of Selecting the Best Life insurance Policy in South Dakota
It isn’t always pleasant to think about life insurance, but the reality of life makes it an important investment to consider. You could pass away unexpectedly from any number of circumstances, regardless of which age group you fall into. Consider these statistics for the leading causes of death among the various age groups of South Dakota.
- The leading cause of death between the ages of 25 to 44 is an accident.
- The leading cause of death between the ages of 45-84 is cancer.
- The leading cause of death in those over the age of 85 is heart disease.
- Heart disease is the second leading cause of death for those who are between 35 and 84 years old.
- Cancer is the second leading cause of death in those older than 85.
- Suicide, liver disease, and heart disease round out the top four causes of death for those between 25 and 34.
Life insurance can bring peace of mind to both you and your family members but only when you have selected a policy that makes the most sense and fits your situation.
The Options With Life Insurance in South Dakota
There are two common options with life insurance, and these are term or whole life insurance policies. These policies differ in a number of ways, and it is these differences that can help you decide which policy will be the best for you.
Term Life Insurance
A term policy is often the more affordable option, and these policies may be offered as a part of an employer benefits plan. With a term policy, death benefits are paid out if the death occurs within a specific coverage period. The terms range from five to 20 years or could end when an individual reaches a specific age. Funds from the policy can cover outstanding debts or funeral expenses.
The average lifespan of a South Dakota man is around 77 years, while a female has a life expectancy of just over 82 years. A term policy may expire long before you reach your life expectancy. For those who outlive the policy, there are no benefits issued to the family upon your passing. The cost for the policy also tends to increase with age, creating a significant investment where the value may never be realized.
Whole Life Insurance
As another option for insurance, a whole life policy is a cash value coverage. This type of policy could also be called straight life, traditional permanent, or ordinary life insurance. Rather than specifying a term with an expiration date, whole life coverage is applicable for your entire life.
The premiums tend to be higher than term coverage, but the benefit of this policy is that those premiums will build up a cash value. This value can be borrowed against if you need funds, but it can also be used to help pay for the policy. This is a policy you can’t outlive and guarantees a return on investment for your loved ones.
Universal Life Insurance
Another form of permanent life coverage is a universal policy. This option varies slightly from whole life in that the premium payments are more flexible, as well as the savings elements and death benefits included in the policy. These plans are sometimes referred to as adjustable life insurance because policyholders are allowed to increase or reduce death benefits, as well as follow a less structured premium payment schedule.
The Influence of Age on Life Insurance Policies
Every year, over $4.6 million is paid out in life insurance and annuity benefits to South Dakota residents. There are around 420 licensed insurers supplying coverage to SD residents, but the best life insurance policy decision isn’t limited to just who you choose is your insurer. Draw from the knowledge of experienced life insurance agents in South Dakota mortality trends to determine the best policy according to your age.
Those between the ages of 25 and 35 should consider life insurance, even if there is no spouse or dependents in the picture. Life insurance will cover the cost of the funeral which could be a burden on the immediate family left behind. These policies can also help pay for student loans or other debts that your parents or close relatives would have to assume. A term life insurance plan may be the most prudent choice.
For adults between the ages of 35 to 50, a whole insurance policy is a good option when making plans for your family’s financial future. While it may be more expensive, the cash value that accumulates can be borrowed against and give your family access to funds when in a bind. With this policy, a young family can be taken off but with the added protection through a person’s later years.
Middle Aged to Senior Adults
Whole life insurance can be the best coverage solution for those who are aging, as there is no expiration date to the policy so long as the premium payments are made. For those in good health, a term policy may not offer long enough coverage. Term policies also tend to be purchased through an employer benefits plan, and retiring from the workforce may jeopardize the coverage. Whole life or universal coverage puts protection in place for as long as you are alive.
The Leading Provider of Life Insurance in South Dakota
To give yourself and your loved ones financial security that lasts after you are gone, trust Meyer Insurance for policy solutions in either term, whole or universal coverage. Receive an individualized life insurance plan that meets your budget and needs and find assurance that your investment will take care of the people that matter the most to you. Contact us for a quote today.