When we think about financial planning, insurance is usually not the first thing that comes to mind. But like the rest of your portfolio, you have to review your insurance at regular intervals to make sure your policies suit the changing circumstances of your life.
The two most common types of insurance are term and permanent. Term insurance provides coverage for losses during a specific period of time and becomes void when it expires. Permanent insurance usually costs more, but it can be great for older people.
There are several different kinds. A whole life policy runs until you reach the age of one hundred – which by the way is a milestone more and more of us are reaching, and the premiums don’t change. Universal life insurance also extends until you become a centenerian, but it is renewable and has an investment component. There are many other kinds of insurance like disability and critical illness. The options can be dizzying, so it’s best to go over this with a financial professional.