Life Insurance

Will your family be financially covered if you were to die prematurely?

No one likes to think about the worst-case scenario, but it's essential to be prepared if something happens. Life insurance gives peace of mind that if the unexpected happens, your loved ones are taken care of financially from a young age up until retirement.

With life insurance, you can be confident that even if something unexpected occurs, your family will still have financial protection regardless of how long you live. In addition, it gives you the peace of mind that no matter what may happen, your spouse/partner and kids will still be able to enjoy their lives without worrying about money issues after you're gone. Plus, with added extras such as coverage for education expenses or disability benefits, there's even more reason to invest in life insurance now to provide security and stability for those depending on you down the road.

What is Life Insurance?

Life insurance is a contract between an individual and an insurance company. Under the terms of the agreement, the insurer promises to pay out a beneficiary (usually someone close to you) when you die in exchange for regular premium payments. The money from the life insurance policy provides financial protection to help take care of final expenses, such as burial costs and other debts, after you are gone.

How Much Life Insurance Do I Need?

Figuring out how much life insurance you need is an important decision. Also, it can take a lot of work to get right. Life insurance is designed to protect those who depend on you financially. The coverage you'll need depends significantly on your situation, so it's essential to consider all the factors when deciding on the right life insurance policy.

Consider Your Needs

Your life insurance needs will be unique; everyone has different goals and responsibilities. It's essential to consider how much money your family would need after you pass away, whether you have ongoing debts or medical expenses to cover, and any future goals, such as college tuition for your children. A little coverage or none might be sufficient if you have few long-term goals or financial obligations. However, if people in your life rely on your income or could suffer significant losses if something happens to you, buying more life insurance coverage might make sense.

Think about Your Income

Your current income should also factor into your decision about how much life insurance you should have. The more income you make, the harder it may be for family members to replace that money when someone passes away. Therefore, purchasing little more than enough coverage is wise to ensure continuing financial security for those family members who depend on that income.

Calculate Your Ideal Coverage Amount

If you need help determining how much of a death benefit you may need for your loved ones, we've created a one-pager excel spreadsheet you can easily follow. 

Types of Life Insurance

There are many different life insurance policies, and you probably heard something like "term life, whole life, universal life, variable life, etc." However, at a high level, they will fit into either Term Life or Permanent Life.

Term Life Insurance

Term life insurance is designed to provide coverage for a specific period. For example, you can purchase a term life policy for 10 years, 20 years, 30 years, or until age 75. As long as you are current on premiums, you'll have the coverage until the term is up or you stop paying the premiums, whichever comes first. Typically, the costs for the term life are less than other life insurance. However, after the term ends, you have nothing to show for it. It is much like auto insurance.

Permanent Life Insurance

Permanent life insurance plans are designed to protect your loved ones for as long as you live. These plans also have tax-advantaged savings components, which allow money to accumulate over time that can be used while living or at the time of death to pay taxes or fund your estate. However, permanent life policies have higher premiums than term policies due in part because there is no ending date on coverage; they stay in effect until death or lapse due to nonpayment.

Choosing Between Term and Permanent Insurance

The essential factor in deciding whether term or permanent life insurance best fits your needs is considering how long you need coverage for - do you want to provide security for something concrete such as living expenses for a specific time, paying off the mortgage, paying off other debt, or kids college funds in 5 to 10 years? If so, the Term Life may be best since you need protection for a specific time.

On the other hand, if you're looking for lifetime protection or have longer-term financial objectives such as saving money to supplement retirement income, for example. Then, Permanent Life Insurance may be the answer.

Bells and Whistles

Once you determine the coverage amount and type, you can add additional benefits through 'riders.' Riders are optional add-ons that can be added onto a policy that provides other benefits or coverage. Here are some popular options you may see and add:

• Accidental Death Benefit Rider: Your beneficiaries will receive more if you die from an accident.
• Long-Term Care Rider: It offers you peace of mind by providing financial protection if you ever need long-term care services such as home health care or nursing home care. 
• Spouse or Child Rider: You'll receive a benefit if they pass away before you. However, the coverage amount is much smaller than your coverage.
• Waiver of Premium Rider: This rider protects against lost income due to an unforeseen disability or illness that would otherwise prevent you from working and paying your premiums on time. If you opt for this type of rider, then your premiums will be waived if such an event should occur during the duration of the policy period.
• Return Of Premium (ROP) Rider: This rider is added to a Term Life policy. You'll get a full refund if you outlive the policy term and make all the premiums. For example, you purchased a 20-year term life policy with the ROP rider that costs you $1,000 per year. After completing 20 years of payments, you'll get back $20,000 from the insurance company.

Shopping Around and Comparison Shopping

Shopping for Life Insurance can be daunting and overwhelming. It would help if you considered working with an insurance agent who can take the time to understand your unique situation and needs. However, I would stay away if the insurance agent who is either captive or exclusive. A captive or exclusive insurance agent acts on behalf of one insurance company. It means that they may offer various types of insurance programs. However, it would be through one insurance company only. For example, if you shop for a new car and walk into a Chevy dealership, they will not offer you other manufacturers like Ford or Toyota. You'll be provided Chevy only. 

Summary

If you have loved ones relying on your financial support, don't delay getting life insurance. Instead, click on the link to get started TODAY.

Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Riders are additional guarantee options that are available to an annuity or life insurance contract holder. While some riders are part of an existing contract, many others may carry additional fees, charges and restrictions, and the policy holder should review their contract carefully before purchasing. Guarantees are based on the claims paying ability of the issuing insurance company.