Why should I buy life insurance?
Life insurance is designed to replace your income and provide your family with financial security in the event of an unfortunate accident or terminal illness. In the event that you should pass on, it should cover both immediate and long-term expenses. For example, you should consider questions like how your mortgage will get paid or your children's college expenses will get funded. What about your outstanding credit card debt or even your final burial expenses? All of these are important considerations and must be factored in to your plans.
What is term vs. permanent insurance?
Term life insurance is an inexpensive way to cover you and your loved ones for a specific period of time or term. The length of coverage is one year or more, with typical policy terms issued for 10, 15, 20, 25 and 30 years. With term insurance, you will receive a death benefit only if you die while you are insured. Permanent life insurance is any policy other than term. This type of life insurance can be much more expensive and usually grows in cash value while term carries no cash value other than the death benefit. One common form of permanent insurance is whole life.
What is the correct term length for me to purchase?
The primary questions to consider when selecting the term or length of coverage is who are the beneficiaries and how long are they going to be dependent on your income? If your concern is for your children, then coverage until they reach 18 or graduate from college is recommended. If the primary beneficiary is your spouse then coverage should last until your retirement (at a minimum). If you're concerned about covering your mortgage then the length of your policy should match at least the length of your loan. Guaranteed policies can be purchased for 10, 15, 20, 25, and 30 years. The length of the term selected should consider your age at time of purchase.
What is guaranteed level term vs. renewable term?
With guaranteed level term insurance, the policy premiums are guaranteed to remain constant (level) for the entire term of the policy as long as the policy remains in force. Renewable term insurance allows the holder the opportunity to renew coverage at the end of the term without presenting evidence of insurability, however, the premiums may increase at the time of renewal.
How much insurance should I buy?
If something unfortunate happens to you, life insurance is designed to replace that lost income. It needs to be able to cover both immediate and long-term expenses. There are two methods that can help you calculate the amount of insurance you should buy. Estimates range from 8 to twenty times your yearly income. Generally speaking the younger you are, the more life insurance you should have. As an example, it's recommended that someone between the ages of 18 - 30 with an income of $50,000 should carry 15 to 20 times their salary or $750,000 to $1,000,000. While the general guideline for someone between the ages of 51-65 should consider a policy 8 to 10 times his or her income. For someone in that age profile earning $50,000 an insurance policy worth $400,000 to $500,000 would be appropriate.Please use our free calculator by clicking here.
The other way to calculate an appropriate level of life insurance is the needs based method. Using this procedure you would analyze what you want your policy to cover, taking into consideration basic living expenses, assets like your home or investments, and liabilities like your mortgage or credit card debt.
How much will term life insurance cost?
Cost is dependent on numerous factors, including a potential policyholder's medical history, height, weight, family health background, age, and in some cases, careers. Generally speaking, with all factors being equal, younger people will have lower rates than older people. The best way to investigate costs is to get quotes from multiple carriers.
Should I insure my spouse? My children?
In most families both husband and wife have life insurance coverage. Even if only one spouse is employed, the loss for a family of either parent can cause hardship due to lost work hours, increased childcare costs, and a change in household expenses. Children may be insured to establish eligibility for life insurance in later years and to cover expenses incurred by an untimely death.
What companies do you represent?
We only represent companies that are financially sound and have received a rating of A or higher from AM Best.
How do I know the insurance company I select is financially stable?
In selecting an insurance company it's important to consider that you are making a commitment of up to 30 years. You expect the insurance company to do the same. You want a financially stable company that will be able to provide you coverage for the entire term. Various companies, including Standards & Poor's, Moody's, Fitch, and AM Best rate insurers financial states. These ratings indicate an insurance company's ability to provide service for the long-term. It's suggested that consideration be given to companies rated A or higher.
How do I know I am getting the best price?
You'll discover the best price for the amount of insurance you need by requesting quotes from multiple companies with similar ratings.
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