What Is Life Insurance?
Life insurance is a simple way to ensure your family and future plans are secured even if you’re gone. Life insurance gives peace of mind by making sure your family is protected. Sadly, many Americans aren’t protected, making them vulnerable to life’s unforeseen interruption.
Who should buy life insurance?
Generally speaking, anyone with someone financially dependent on them is a good for life insurance:
- Individuals with children.
- Someone who owns a property and has a home mortgage he wouldn’t like to pass on to loved ones.
- Single individuals who support aging parents or young siblings. Or, they may be thinking of starting a family soon and want to buy when the cost is lower, still healthy and insurable.
- Business owners.
- Individuals who would like to enjoy the insurance benefits when needed (accelerated benefit) during their lifetime.
How much insurance does one need?
The rule of thumb often used when talking about coverage is 10 times your annual gross salary. But you may need more or less coverage depending on your specific situation. It’s better to talk to us in completing a free personal needs assessment.
Why do I need another insurance if I have insurance from work?
Very good, but when you leave your job, chances are you can’t take it with you because it’s not portable. Foremost, your coverage amount may not be adequate for your family’s protection.
I’m still young, why should I need insurance?
As you grow older, the premium goes up. Also, your health risk may change later in life or as you live longer. Buying a policy when still younger makes a lot of sense.
What determines the cost of life insurance premium?
- Type of policy – term insurance is usually cheaper than permanent policies.
- Your age – premium is cheaper when you’re young. It increases every year that you put it off.
- Your gender – men pay more than women because based on studies, women have a longer life than men.
- Your health – there are several health classifications in underwriting.
- Your hobbies – premium for those who have dangerous hobbies such as paragliding, scuba diving, etc. is higher than less dangerous hobbies.
What type of life insurance is right for you?
Two kinds of insurance are available to you: Permanent and Term Life Insurance. Both offer death benefit protection for your loved ones. However, they also have several differences:
| PERMANENT | TERM | |
|---|---|---|
| Gives you | Lifetime protection & tax- deferred savings | Higher death benefit for the lowest cost |
| Coverage until when? | Until age 100+ as long premium is paid | For specified number of years: 10, 15, 20, 30 |
| Cash value accumulated? | Potential to accumulate cash overtime on deferred tax basis | None |
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We are ready to give you additional important information to make an intelligent decision which insurance coverage is good for you. We work with top insurance companies, giving you excellent options. Contact us today!
