Why buy life insurance?
One of the most important reasons to purchase life insurance is to ensure your loved ones are provided for financially. Life insurance is also useful in helping your survivors pay bills and debts after your death, as well as for funeral expenses. It may be used for wealth accumulation and distribution as part of an overall financial strategy.
How much life insurance do I need?
Generally the amount of protection you need is a combination of what it would cost to help your surviving family members and dependents meet their current needs (like taxes, food, clothing, utilities, mortgage payments, etc.) plus future obligations (like college and retirement funding) – minus the resources that your surviving family members could draw upon to meet those obligations (spouse’s income, savings and investments, other income producing assets, and any life insurance you might already own).
What type of policy should I buy: term or permanent (whole, universal, variable)?
Insurance needs can vary widely from person to person. The kind of coverage that’s right for you depends on your personal circumstances and needs.
What if I already have insurance coverage?
Even if you already have a life insurance policy, it’s a good idea to review it periodically to make sure it still meets your overall needs. There are times in life you need to take a look at your financial situation, such as if you:
• Were recently married or separated or marriage was annulled
• Had or adopted a child (or became a grandparent)
• Have children or grandchildren who are about to enter college
• Provide care or financial help to a child or elderly parent
• Received an inheritance
• Retired or your spouse has retired
• Started a business
• Changed/lost your job or salary
What is term life insurance?
Term life insurance provides protection for only a specified period of time – usually 10, 15, 20 or 30 years. Term life insurance policies do not have a cash value or any amount you can borrow against. There is no cash value associated with term life coverage, which explains why premiums are often lower than for other types of insurance.
What is permanent life insurance?
Permanent life insurance lasts for the life of the insured. The policy accrues cash value and the payout is assured at the end of the policy if the policy is kept current. Whole, universal, variable, and single premium life are all types of permanent life insurance.
What is whole life insurance?
Whole life insurance provides protection for the entire life of the insured and provides a set level of security for your loved ones. You can borrow against the policy’s cash value, as it accumulates over time, to help cover unforeseen expenses.
What is universal life insurance?
Universal life insurance provides protection for the entire life of the insured and builds cash value over time while offering flexible premiums and a flexible face amount. This type of insurance may be ideal for retirement planning or any number of other long-term goals.
What is variable life insurance?
Commonly referred to in our country as a Variable Unit-Linked (VUL) insurance, a variable life insurance is a policy whose cash value is based on the performance of an investment sub account. The cash value can be invested in a variety of investments that can include stocks, bonds, and money market funds. There is no guarantee on the cash value of this type of policy as you are subjected to investment risk.
What is variable universal life insurance?
Variable universal life insurance is coverage where the entire value of the policy is regulated as a security. This means that the cash value and the death benefit will fluctuate with the value of the investment sub account. The risk is higher with this type of policy.
What is long term care coverage?
Long term care coverage can pay for a wide range of health and social services for those with chronic conditions. Coverage often includes nursing home care, home-based care and respite care.
What is disability insurance?
Disability income insurance protects against loss of income in case of disability or extended illness. This type of insurance can be very important for the sole or primary wage earner in a household.
The disability policy defines how much will be paid, when the payments will begin and when they will cease. The longer the benefit period, the higher the premium will be.
What are policy ‘riders’?
A policy rider is an additional benefit under an existing insurance policy that provides additional coverage to an insurance policy. Generally, policy riders are sold separately from insurance policies.
You may also want insurance for wealth accumulation or distribution purposes during your lifetime.
How can I save money when buying life insurance?
- Canvass first. Ask for quotes here at www.yourwealthclinic.com.
- Buy it now. Premiums for the same face amount of coverage increase the older you become. The more you wait, the more you risk developing a health condition that could increase your premium, or disqualify you from coverage.
- If you want permanent life but you’re on a budget, term life or a combination of term and permanent may offer lower premium payments.
Will insurance help my beneficiary pay off my debt?
Once a claim is paid, use of the funds is at the discretion of the beneficiary you’ve designated. Your family beneficiaries can use the money to cover household expenses, children’s education, business investing, pay off house mortgage, travel, donate to charity, etc.
Do I need to have a medical exam?
Most life insurance policies require a medical exam.
Where can I get more information about insurance?
Just email us at firstname.lastname@example.org and we’ll have one of our experienced financial advisors answer your questions and attend to your needs. Consultation is free, private, confidential, and creates no obligation. And no hard sell.