The Basics of Life Insurance

Life insurance is a financial tool that can provide security for your family. Many new parents may be concerned about what will happen to their spouse and children if a parent dies. Life insurance provides that much-needed safety net. It can be used in many ways including paying off remaining debts and funeral expenses. Our team at DJ Kauffman Agency Inc. works with individuals and families throughout the Hutchinson, KS area to serve their insurance needs.

Life Insurance Options

Life insurance policies are available in two primary types: term life and whole life. Both types offer advantages in certain life situations. An important consideration is the impact of inflation and the estate taxes that will be incurred. This will affect the type and amount of coverage that you choose. Term life policies are active for a defined period of time. However, they can be renewed. While the premiums are lower than whole life insurance, the premium increases every time it is renewed. It’s important to note that term life policies do not build cash value. 

Whole life insurance policies stay active during the life of the policyholder. They do carry a higher premium but they also develop cash value. When needed, the policyholder can borrow against it.

There are many benefits to a good life insurance policy. Your children’s future education is assured. It can also be used to pay off a mortgage, as well as, final expenses. Some earmark certain funds for charitable purposes they support.

At DJ Kauffman Agency Inc. in Hutchinson, KS, our agents can talk with you about the advantages of different life insurance plans. They are ready to get you started on the path to protecting your family. Selecting a plan and policy amount requires some thought. Call us to get started today!