Reader’s Question:

Our family is growing! We are having our second child and saw a show on TV the other night discussing life insurances. We thought we could get one in Arvada, Colorado CO. My wife wants a term life insurance while I prefer universal life insurance. Can you please mediate between us?

Andrew

Arvada, CO

Hi, Andrew! What an appropriate time to be thinking of investments! When you expand your family, you obviously want to secure their future, and life insurances are indeed a form of investment. Since term life and universal life insurance both benefit pre-identified beneficiaries with tax-free proceeds, usually children or grandchildren of policy owners, it can also be viewed as the first step of securing your children’s future.

Term life insurance is the most basic form of insurance and does not have an investment feature, which universal life has. Although premium for term life insurance is usually paid monthly, there are many insurers in Arvada Colorado CO that will offer annual-renewable policies. Term life allows the owner to purchase insurance for a renewable period of time. Term life insurances will always be cheaper than universal life insurance and many young couples are attracted to this type of policy.

Permanent life insurances, among them universal life insurance, has a savings and investment component. Universal life policies earn tax-deferred cash value, which can be used for many purposes, including an educational fund. It is very flexible and allows the owner to manage or schedule their payments. Term life insurance can be converted to universal life if the owners so desired – ask your local insurer in Arvada Colorado CO about this. I’d suggest that you do some research and start getting free quotes for the options you’ve mentioned. You can do so on this page by entering your zip code on the space provided below. Since a growing family naturally equates to bigger expenditures, the amount of the policy can be a big decision factor for you and your wife.

Congratulations, Andrew to you and your wife; I wish you all well!