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What you should know about Life Insurance
It is never too early to start thinking about protecting the financial future of your family.
Life insurance is a guaranteed way to make sure your family is protected financially in the event of an untimely death.
The arrangement requires that you make your premium payments on time and in turn the company promises to pay your family the specified amount of life insurance at the time of death.
The money received from the death benefit can be used in any way you choose. It could be for the replacement of one’s income, paying off your home balance, children’s education, helping to fund your retirement or any way you see fit to help you with your families financial future.
We want to be sure that when you have a policy with us, you fully understand the coverage you are purchasing and what it all means. We will take the necessary time to explain your coverage to you, so together, we can make the right decision on the protection you and your family need. Fill out a life insurance quote now!
Once a client with us, we will periodically be reviewing your policy, making sure to see how your situation may have changed. We will review your coverage again, make adjustments if necessary, and continue to make sure you are adequately covered.
In dealing with a local agency instead of an 800 number, we are able to get to know you, your family and your situation to better serve your changing needs. Also with a local agent, you will gain the added benefit of having someone that can assist you along the way with any questions that may arise in this difficult time. It could be as simple as helping explain the how the process works.
There are many different types of life insurance coverage you need to understand to put a policy together:
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Term life insurance - is the simplest of life insurance products. It is normally used to provide protection for a specific period of time. Term insurance is normally sold in time periods of 10, 20 and 30 year policies at a guaranteed level premium.
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Term Insurance - is a great product to cover a specific time period where it can be purchased at a lower premium than a permanent product. It is limited in the time period for which it will provide coverage, whereas a permanent product will cover you for the duration of your life.
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Whole life insurance – will continue to cover your death benefit for the rest of your life as long as you make all of your premium payments. With level premiums and accumulation of cash values, whole life insurance is a good choice for long-term goals. There are guaranteed cash values, which provides money later on to assist with temporary needs or emergencies.
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Universal life insurance - is a flexible-premium, adjustable benefit life insurance policy that accumulates account value. The flexibility of this policy allows you to change the amount of insurance as your needs for insurance change. Some changes require underwriting approval.
As with all life insurance, the main purpose for buying a Universal Life insurance policy is the death protection provided to your loved ones at your death.
Life Insurance Frequently Asked Questions
How much life insurance do I need to purchase?
Many advisors use the simple rule of 5-10 times your annual salary to help replace finances your family would lose in the event of death. However, when reviewing all of the needs of the family, depending on what stage in life the family may be in, they, perhaps, need more money. Many people are taking out policies larger than the 5-10 times their annual income if they plan to provide other opportunities such as college, weddings, or longer period of time for income if they have young children.
Evaluating your family's needs is the first step in purchasing a policy. Gather all your personal financial information and estimate how much money your family will need after you're gone. Include ongoing expenses such as day care, tuition or retirement and immediate expenses at the time of death like medical bills, burial costs, and estate taxes.
What's the difference between standard and preferred rates, and how do I determine if I will qualify for a preferred or standard rate?
Most of the time to qualify for a preferred rate, you must be in excellent overall health. Some of the requirements to qualify would be things such as:
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Be within certain limits on height, weight, blood pressure, cholesterol
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Family history will be looked at for parents who have died from cancer or heart disease or stroke.
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Have not or never used any form of tobacco or like products.
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No no history of drug or alcohol abuse
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Not be engaged in any hazardous activities.
Does Smoking Affect My Premium?
Usually, a smoker's premium rates are higher than those of non smokers. But it is possible to change your premium in the future should you stop smoking. Most providers require you to have stopped smoking for a year in order to alter your premiums to non-smoking rates.
Do I Need To See My Doctor?
There is a medical evaluation, a simple gathering of information, such as height, weight, drawing blood and urine sample that is submitted to the underwriters, for them to be able to make an assessment. However, if there are some health issues, the underwriter may request for further information from your Doctor.
How Much Will Life Insurance Cost Me?
Premiums are based on gender, age, if you are a smoker or not and the amount of coverage you wish to select. The medical exam will determine your premium. The quoted provided is based on standard rates which are a preliminary guide only. Your quoted premiums can change due to your health, occupation and lifestyle.
Does My Spouse Need Life Insurance?
In determining whether or not a spouse needs life insurance or how much he or she may need, the following should be considered: In a dual income household, it is important to protect the income of both spouses. The loss of one income could be a severe financial hardship on the family. If a spouse is a non-wage earner such as a stay-at-home parent, life insurance should still be considered. If the non-earner dies, new expenses such as child care and house-cleaning will be incurred.
What is Whole Life Insurance?
Whole life insurance gives you lifetime coverage at a premium rate that does not increase with your age after you buy. In the early years of the policy when you're a low risk, you'll pay more in annual premiums than it costs to insure you. As you become a higher risk at an older age, the level premium eventually becomes less than the amount it takes to insure you. Level premium payments build a reserve in your policy that is used to insure you as you age. Insurance companies call this reserve the "cash value."
What is a beneficiary?
A beneficiary is the person or entity you name in a life insurance policy to receive the death benefit. You can name: One person, two or more people, the trustee of a trust you’ve set up, charity, or your estate. If you don’t name a beneficiary, the death benefit will be paid to your estate.
What's the difference between face amount and cash value?
The face value is what your beneficiaries will collect. The cash value is the excess of your premium payments over the cost of the insurance. Click here for more about life insurance cash value.
Why buy Life Insurance?
Some reasons include, but not limited to, Income replacement, funeral expenses, pay off debts or medical bills.
Fill out our simple Life Insurance online form and a representative will contact you from Glenn Kaplan Agency
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