Protect Your Family With a Life Insurance Policy
This is often a topic that most don’t want to think about, but if something were to happen to you your family will be relieved you have a policy. Choosing the right life insurance policy is important to make sure your family is financially covered, not everyone needs life insurance, but it is important to make sure you are covered if you do. Also having life insurance through your company may not have enough coverage or end when you are no longer employed there, so having additional coverage is always helpful.
So, what exactly is life insurance? Life insurance pays a lump sum after your death to any person you designated as a beneficiary. Your beneficiaries can be children, spouse, or other family or friends. Life insurance is important because if you are a primary financial supporter for your family, stay at home parent, divorced parents, have a special-needs child, have a home mortgage, a high net-worth individual, business owner, want to provide an inheritance to others, maxed out retirement plan, covering funeral costs then it can help them be covered if something were to happen to you. Life insurance covers debts like your mortgage, lost income, or even college tuition. Life insurance is there to make sure that your financial obligations are covered if you lost your life. Most life insurance policies are tax-free.
One thing you can do is add up all of your living expenses including your home mortgage, debts, and if you have children their school/college costs to see what type of amount you will need in the case you die prematurely.
How much coverage do you need?
Choosing the right life insurance policy can be confusing but Senior Insurance Consultants is here to help you chose the right life insurance policy and understand how it will help your family’s financial needs, so they can be prepared for the unexpected. We understand that no amount of money can replace someone you lost but being able to avoid the possibility of a financial hardship on top of your loved one dying is important.
There a many types of life insurance options like term life, universal life, whole life, variable life.
Types of Life Insurance Plans Life Insurance Plans
Term Life Insurance
Universal Life Insurance
There is also Indexed Universal Life insurance which allows you to distribute your cash value to an equity or fixed account. This insurance has a tax deferment option for your retirement as well as the death benefit. This is a good plan for those who are business owners, estate planning, or premium financing although this is considered advanced life insurance and sometimes can be a challenge to understand. Indexed insurance is a permanent insurance policy that will stay in effect as long as you make your payments. This policy has two parts first part is your death benefit which gets paid if you die, second is the cash value which is added over time which can be used to pay for premiums. The “indexed” part is that you will have a declared interested rate set by the chosen insurer at a minimum guaranteed interest rate and you don’t have to worry about losing money. A benefit to indexed is that you can get a good growth amount and you have a minimal risk if the market plummets. How this works is that each year the interest you earned is locked in and the new year will start with the new total including the interest earned the previous year, therefore you are not able to lose that money. Since this isn’t quite the same as regular investing you won’t get any dividends from your investments.
There are a few additional benefits to Indexed Universal Insurance. Those benefits can be life insurance with long term care, it doesn’t impact social security taxation, tax deferred, gains are locked in, access to the cash at any age.
Another great option is the disability rider, this covers you if you become permanently disabled. If you become permanently disabled, the insurance company will pay your premium for you and you will continue to stay covered.
Whole Life Insurance
At Senior Insurance Consultants we offer free consultations and do our best to understand your needs and help you chose the right insurance plan for you. Give us a call today and see how we can help you get covered for the unexpected.
For More Information Speak To One of Our Insurance Brokers
Don’t wait to purchase a life insurance policy, call Senior Insurance Consultants today at 480-383-9349.