life insurance

A Beginner’s Guide to Purchasing Life Insurance

Life insurance provides benefits for your family when you die. It’s hard to think that someday you’ll leave them behind. The hardest part? It is to leave them with debtors hounding their doorstep once you die. Or, if you die unexpectedly your family doesn’t have a ready source of income.

Of course, you might have a business that your family can inherit. But can they run it the way you want them to do? It’s full of uncertainty, especially if your kids are still young or your partner may not have the essential skills to make the business a success.

Thus, do not let this happen. As scary as it may seem, it’s about time you take action and think about life insurance. Here are the things you should know about it.

What are the Benefits of a Life Insurance?

A life insurance policy has many benefits, including the security of wealth and lifestyle for your family. When you think of lifestyle security, it doesn’t necessarily mean they will live like rich people.

It means a comfortable life where they don’t have to think about where to get funds for paying essential expenses such as rent, education, or medical costs. This lifestyle could last for years until your family can sustain themselves.

Other benefits may include:

  • payment for funeral and unpaid hospital bills
  • Inheritance such as funds for college education
  • Lump-sum money for your family to use to get back on their feet
  • Settlement for estate taxes, mortgages, or other debts.

What is the Best Type of Life Insurance?

Primarily, life insurance has two major categories: term and permanent.

Term life insurance

Term life policy has an “expiration”, which may last up to 30 years. Some policies expire when you turn 65 years old.


  • Less expensive in terms of premium
  • Flexible and convertible


  • No guaranteed cash value
  • No investment component

Permanent Life Insurance

Permanent life insurance is either whole life or universal policy and is valid while you are paying the premiums. This insurance allows you to build up a cash value, which you may receive after surrendering the policy. It has an investment component.


  • No tax on dividend related to the cash value saved
  • Lifetime coverage and benefits acceleration
  • Allow borrowing to the cash value


  • Expensive premiums
  • Tax implications when you have outstanding loans

Convertible Vs. Combination

Convertible policies allow you to turn your term insurance into a permanent one. A combination of product insurance is when you supplement your life insurance with life care insurance. This allows better, more comprehensive coverage.


  • Flexibility
  • Better coverage


  • Expensive

How Do You Know the Life Insurance You Need?

To answer the question, you should consider several factors. These factors include your budget, your goals, and your needs.


Why are you getting life insurance? If you want to build wealth for your family, get the insurance that allows you to invest. A guaranteed cash value could also be an excellent way to ensure your family receives something when you die.


Of course, this plays a great role in choosing the Denver Life Insurance that fits your goals. Remember, you have daily expenses, mortgages (if any), and the premiums if you get insurance to think of. Factor also emergencies that may come up in the future.

Age and health also affect the premium for life insurance. Start young when you’re still healthy and capable of earning the money you need to pay for the premium.

Protection Needs

Avoid getting high-premium insurance for its cash value benefits without having enough protection.

So, given all these factors, the best thing to do is to consider term life insurance first. This policy is great for short-term goals with adequate protection. You can opt for a convertible policy, which allows conversion once the term lapses.

Evaluate your insurance goals every time your living status changes. Make sure your beneficiaries, especially your kids, can enjoy the life you want them to have.

Final Words

To decide, take your net-worth as one of the criteria. If your net worth is high, you can get permanent life insurance. Moreover, you can save the income earned from the investment component to pay for estate taxes when you die.

If you’re a business owner with an average net worth, go for term life insurance in the meantime. Invest the money that you should be paying for the premium (if you had gotten the permanent)

Lastly, don’t hesitate to ask an expert opinion about the right insurance for you. That opinion can clear things up if there’s something you don’t understand.

About Mountainside Insurance Management

Mountainside Insurance Management, LLC is a multi-state insurance brokerage and management specialist. We are an independent brokerage and work with over 150 A+ carriers to secure comprehensive coverage for our clients. Our brokerage is committed to providing the highest quality insurance and risk management services at the most competitive premiums with hands-on services tailored to our customers’ needs. For more information about reducing your risk, contact us today at (720) 800-9495.