Life Insurance

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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.

Protect your family with a life insurance policy in Arizona. Call Senior Insurance Consultants, LLC at 480-383-9349.

How much coverage do you need?

There are lots of factors that play into this question and everyone’s situation is going to be different. Some factors to consider are any other sources of income, your debt, how many dependents you have, and the lifestyle you currently live. It is important to consult one of our financial planners to make sure you get the right coverage, but you should at least plan on 5 to 10 times your annual salary. The best time to apply for life insurance is when you are healthy, why? Because they base your price off your life expectancy and medical problems that can shorten your life expectancy leading to higher prices. 

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

Term life insurance provides financial protection for a certain amount of time, for example 10 or 20 years. This option is typically less expensive than permanent insurance policies. Term insurance is still important when it comes to protecting your family’s financial objectives. Term life is typically paid out in one lump sum rather than consistent payments. Term life insurance is usually for replacing income during working years, that can be tax free, and have a fixed premium. You might choose term life insurance to cover your family when they depend the most on you financially, other polices are more for when you are done working and your house is usually paid down, you have saved money, and your kids have grown up. Again, this type of insurance is to replace your income over a specific amount of time and sometimes can be converted over to a permanent coverage at a later time. You need to purchase an amount that would support your family if you were no longer here to provide for them. Term insurance payout can help your family with their everyday bills like mortgage, child care, car payments, and more.

Universal Life Insurance

Universal Life Insurance is a permanent insurance coverage that will provide you coverage for a lifetime. Universal insurance is very flexible which allows you to change your premium and coverage amounts throughout your lifetime. Why would you want Universal Life Insurance, to help protect the wealth that you built up from all those hard years of working and you want to be able to transfer that to your beneficiaries. Another reason someone would want Universal life insurance would-be long-term income replacement since some polices can focus on death coverage and adding cash value.

Universal Index

There is Universal Life Insurance which has a lot of different options to choose from for example a fixed rate to a variable one. This life insurance allows you to select different equity accounts to invest in.

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

Whole life insurance has both death benefits and a cash value allowing a saving’s element, this plan typically is a higher cost. This policy will stay in effect until your death and is considered a lifetime coverage. Whole life insurance can be used for transferring your wealth to your beneficiaries. Whole life can provide money to your heirs so that they can pay estate taxes and not be forced to sell your property. It can also be used for help with a special need’s children, so that they are cared for after you are gone. It also can allow you to use your retirement money without worry of funeral expenses or if you want to leave someone inheritance money. The cash value on whole life is based on how much the investment is worth. Some of the cash value can be borrowed or withdrawn during the life of your policy. Although it can take some time to earn a good cash value, it is recommended to start this policy early. Whole life insurance usually requires a health exam, this can be skipped but the price will be higher. A whole life policy is great plan if you die prematurely, need an emergency fund for the family, or to help build some extra retirement funds. Some policies can earn dividends, although not a guarantee. These dividends can be used for cash at any age with no penalties, decreasing your premium, earned interest, and more.

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.

Call to schedule an appointment

Call Senior Insurance Consultants today for more information on our available insurance policies 480-383-9349.