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Bruce Sackrison's Insurance Matters: Life insurance - what fits your needs?
Insurance Matters

Bruce Sackrison's Insurance Matters: Life insurance - what fits your needs?

From the Bruce Sackrison's Insurance Matters series
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Bruce Sackrison

Bruce Sackrison is a Napa Valley Register columnist who will write about property and casualty insurance matters.

All life insurance policies are not the same, as we will see in the following few articles. Today we will focus on term life insurance.

If you are young and healthy, looking for a safety net for your family, term life insurance may be a good fit for you. We will take a look into the life of two young families, the Pattersons and the Naumans, to see an example of how this type of policy plays out:

Geoffrey and Patricia Patterson became parents to a lovely set of twin girls just one year after their wedding. Shortly after the girls were born, Geoff and Pat began having all kinds of questions pop up in their minds.

“What if something happens to us while our parents are babysitting this weekend?”

“What if Geoff suddenly dies in an accident?”

“What if Pat succumbs to an illness like the neighbor who left a young father to care for three motherless children?”

“What if...?”

The Pattersons discussed life insurance with their broker, asking about the options available. She took a look at their income, asked about their habits and medical history, and laid out the options.

Term life insurance appealed to Geoffrey and Patricia thanks to the low monthly payments.

Knowing that once the term was up, they could renew, change policies altogether, or cancel, made sense for where they were in life.

The Pattersons had a happy, healthy life with the twins until the 20-year term was over, after which they chose a different type of policy that better fit their age and situation.

They did not receive any payout for their years with the policy they chose, but were happy with the low payments that had been so affordable.

The Naumans were another young couple with three boys. They had the same nagging questions as the previous couple and chose the same type of policy.

Bob and Jennifer were healthy, fit, and careful with their lifestyle, allowing them to choose a large amount of coverage for a low monthly cost.

Sadly, Jennifer and the boys lost Bob to a brain aneurysm several years after they obtained their life insurance policy.

As the beneficiary, Jennifer collected $500,000 from their insurance provider, which greatly helped as she and the boys settled into a new phase of life.

Term life insurance, as you can gather from the above scenarios, is an affordable choice if you are young, healthy, and live a smart lifestyle.

You pay low monthly fees, knowing there will be no payout unless you die, whereupon your beneficiary receives the full amount you chose for your policy.

With the average life expectancy being near 80 years, the risk to underwrite a young, healthy person is low, allowing for low monthly payments.

I will introduce you to other life insurance options in the following weeks, but if you have questions, give me a call. I’m always happy to discuss your insurance needs.

Bruce Sackrison is an insurance property and casualty broker affiliated with Professional Insurance Associates. He is at 707-931-0186 or bruces@sackifs.com.

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