Life insurance is an important, but often confusing topic to many people. People ask the same questions repeatedly because they don’t know where to get reliable information about in life insurance. This blog post will answer your most frequent questions about life insurance so you can make a more informed decision!
What is life insurance and why do I need it?
Life insurance is a life-long agreement between you and an insurer. You pay the company money in return for their promise to cover your funeral costs, mortgage payments or other debt if you die while insured.
A life insurance policy can be as simple as providing coverage that will help provide income replacement for a spouse who loses his/her partner to death.
People usually buy life insurance to provide a financial safety net for their dependents-to ensure that their spouse, kids, or elderly parents will be provided for if they die before the end of life’s journey.
This is often called “financial protection.” Life insurance can also help people with estate planning and giving some level of peace of mind.
How much coverage do I need?
Life insurance can be pricey, but it is an important purchase to consider. The average annual life insurance policy ranges from $600-2000 dollars a year, depending on the amount of coverage you want.
The cost will vary depending on many factors including: age and health concerns such as smoking or obesity. It’s also important to consider the life expectancy of the individual.
Many people start thinking about life insurance when they have kids or get married, so it’s important to consider how long you want your life insurance policy to last. You can buy a term life insurance policy (the same amount for a set number of years) or a permanent life insurance policy that lasts until you die.
A life insurance policy that lasts for your entire life and keeps the same amount of coverage is called level term life insurance. The idea behind this type of life insurance is that it will provide enough protection until you die-at which point, all proceeds go to your beneficiaries or estate.
Some people choose a decreasing universal life rate because premiums start out high and decrease over time. This life insurance policy is the more expensive type of life insurance, but it can last your entire life with coverage for children as they grow up-at which point you have a reduced premium and still maintain life coverage.
Why should I choose a term policy instead of an endowment plan or whole life?
If you’re concerned about life insurance costs, the term life policy is a much cheaper option. Term life policies are often less expensive in total cost than whole life or endowment plans that can have hefty premiums and many years of coverage.
Term life insurance simply pays out for your beneficiary if you die before the end of your contract-typically measured in years-and doesn’t have any life insurance coverage past the end of your contract.
What are the benefits of having a spouse as beneficiary on my life insurance policy?
There are many benefits for life insurance. One of the most important ones is that life insurance can help provide income replacement in case your spouse dies before you do and they’re not receiving any other sources of financial support.
If a life insurance policy provides enough coverage, it will pay out to their family when he/she passes away paying off any mortgage, life insurance policies or other debt they might have.
This is often called the “financial protection” that life insurance provides-and it can provide some level of peace of mind for a spouse who was left behind after losing their life partner to death.
The money from life insurance also goes towards providing financial security for children and elderly parents.
The life insurance policy can also act as a “safety net” for your beneficiaries-if you’re able to provide financial support while alive, it’s likely that life insurance will be providing some amount of coverage when you die. If the life insurance provides more than what is needed, then there are often tax benefits or other options available.
If you want to discuss options for life insurance, please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:00 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!