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Life Insurance

Life Insurance for Consumers

Insurance Guide

Life Insurance Guide to Policies and Companies

Choosing the type of life insurance can be a little tricky. For more information beyond our guide, we suggest inquiring with your trusted insurance or finance professional.

 

Types of Life Insurance

Term Insurance

A term insurance policy typically provides the greatest benefit amount for the least premiums making it the most affordable option of life insurance. Term insurance provides coverage for a set amount of years (typically 5 to 30 years, varying depending on the insurance company you purchase from).

A benefit of term insurance is knowing how long your coverage will last. For example, a 30-year coverage can be used for your mortgage years making it both a reasonable and sound plan.

 

Permanent Insurance

Permanent life insurance is a smart addition to any financial plan for people who want more ways to protect their family, minimize their taxes and grow their money over time.

Unlike term insurance, permanent life insurance helps you live more for today by protecting your family for your entire life, while adapting throughout your life to provide tax-advantaged access to your cash when you need it most.

Permanent insurance has cash value with the potential to grow over time with tax-deferred growth.

 

TAX BENEFITS OF PERMANENT LIFE INSURANCE

While 401(k)s and IRAs offer tax benefits, they have income taxes on the money you pass along.

Permanent life insurance allows you to keep more of your money by helping to minimize your taxes, and generally offering no income taxes on any money you pass along to help give you more control over your and your family’s financial future.

 

The Best Insurance Carriers

The life insurance carrier is the company that you are paying to protect your family, so it’s important to make sure they have a good reputation and are financially stable. There are several types of life insurance carriers and each type offers different products. So, it is important to find the carrier that fits your needs and budget.

Life insurance is one of the most important financial decisions you will make in life. While the type of life insurance carrier may be less important than the details specific to your situation, a knowledgeable agent can help sift through the small details and get you the best coverage for you. You can also view the best carriers by the type of policy and need, based on Investopedia.

Top Rated Companies to Compare

Who needs life insurance?

Life insurance is an essential part of any financial plan. While life insurance provides security and protection for your loved ones when you are no longer here, it can also provide a reservoir of cash in some policies. Strategically planning for your future with life insurance ensures that you will have a well-rounded plan for years to come. If plans change, you can buy another policy or cancel an old one.

Living life with life insurance means that you can fully enjoy your time here without worrying about the what-ifs in life, and by providing peace of mind with life insurance, the burden of the unknowns is relieved from your shoulders.

  • Homeowners

First-time homeowners carry a lot of debt. If you were to pass away while still paying for your mortgage, how would your loved ones pay for the additional cost of owning a house? Life insurance provides protection from life’s unknowns and big what if’s. Instead of your family struggling to pay for your funeral payments, credit card debt, car payments, and mortgage, the insurance company will provide a benefit amount upon your passing which can pay for the entire amount of the house or condo and may even cover your additional debts.

  • Newlyweds

Married couples and life partners are likely to both work and contribute to the household income. What happens when one person passes away and the household income decreases, but the same amount of bills need to be paid, plus funeral costs? The survivor is left with the burden of the loss of a loved one and the harsh reality of increased financial obligations. A life insurance policy’s death benefit can be spent in any way the beneficiary likes. Proceeds from a life insurance policy would help the surviving partner maintain their lifestyle by helping to pay bills and debt including mortgage payments, car payments, student loans, and credit card debt.

  • New Parents

Taking on the new role of parenting, or adding an extra bundle of joy in your life can be both challenging and rewarding. Having a child can also be quite expensive with the typical American family spending $233,000+ raising a child from birth to age 18. For a middle-income family, housing accounts for 29% of costs, 18% for food, 16% for child care/education, according to the USDA. 

Life insurance provides an income should one, or both parents pass away. The life insurance benefit can be used for costs of living including food, housing, child care, and education. If you are a single parent, the life insurance benefit is a financial lifeline for your child should you pass away. 

See this Bankrate guide that covers which financial expenses soon-to-be parents can expect. It includes a breakdown of the different costs to consider when raising a child.

  • Highly-paid employees

Many employers now offer group life insurance with a few thousand dollars of benefit to cover a small funeral cost, sometimes more. However, this is often not enough coverage especially if you have a family. If you are looking to move jobs, your group life insurance coverage will likely end creating a gap in coverage for you and your loved ones. Having your own individual life insurance policy means you won’t have a gap in coverage when you switch jobs.

If you’re starting your own business, a “key person” insurance coverage will help to protect your business by providing a benefit to replace the lost income and pay for business expenses in case of death or disability. Valued partners and employees have an enormous impact on your business both positively, but also negatively if they cannot perform their job. With a “key person” coverage you can use the benefit to buy out a partner without depleting company cash reserves, or use the cash to pay for expenses and buy time to fill in the gap.

  • Individuals Looking Towards Retirement

Life insurance is important in creating a well-structured and well-rounded retirement plan. Permanent life insurance policies provide a reservoir of cash that you can use during retirement through the cash value component. Life insurance is also used for estate planning and may help your beneficiaries pay taxes and legal fees. Consult with your financial advisor on the best plan for your retirement needs.

  • Caregivers

The aging population is living longer, and many people in the United States rely on family members to care for them. This puts an enormous financial and emotional burden on loved ones as they try to cope with their ailing relatives. If you’re providing care for an aging relative, a life insurance policy is essential in making sure you have a backup plan to protect their continuity of care if you pass away.

  • Divorcees

Ending a relationship is a good time to reevaluate your existing life insurance before a divorce is finalized. If your current life insurance coverage lists an ex as a beneficiary, consider excluding them from your list. Don’t forget to review your beneficiaries after splitting up.  In addition, consider purchasing your own life insurance policy, or adding a new one.

How life insurance works

A life insurance policy is a contract between the insurance company and the insured. If the insured passes away within the contract period, the insurance company will pay money, death benefit, to your family. Life insurance is an integral part of sound financial planning.

What does life insurance do for you?


    • Provides income replacement
    • Covers debt and losses
    • Can provide tax benefits
    • Fund a college education
    • Provides peace of mind to you and your loved ones
    • Rounds out your retirement plan

Considerations for life insurance

COVID-19 and the Life Insurance Industry

Over the past couple of years, our industry has utilized electronic tools as a proper way to do business. With e-Application processes, expedited underwriting, and the option to get a policy without bloodwork or labs, purchasing life insurance online has never been more efficient and easy. 44% of the population would prefer to get their life insurance quotes online, and 36% prefer to purchase online. With simplified underwriting, you can skip the entire underwriting process — that means no exams, bloodwork, or medical records for qualified individuals. Use our 3 step process and get the coverage you need without the hassle of full underwriting.

COVID-19 has caused people to become more aware of themselves and their loved ones, their mortality, and the long-term retirement risks that they carry. Specifically, life insurance purchases skyrocketed in 2020 within the younger age groups, ages 0-59. However, 80% of millennials say they have limited knowledge of insurance.

Lokahi Unity of Purpose

Occidental Underwriters Challenge 2022

Each year, Occidental Underwriters of Hawaii kicks off the year in the month of January to energize and reinvigorate our agents and staff. This year’s theme is “Lokahi: Unity of Purpose” which speaks to the positive impacts we can make by working together.

Our business thrives on helping others. We provide services for agents to grow their business, and in turn, these agents help people in the community to provide protection for people against financial losses.

This charity challenge ran from January 17 thru March 18, 2022. Over 2 months, our Occidental Underwriters Ohana fundraised for 4 charities that were close to our hearts. We had so much fun and found that this challenge brought us closer together as an office, inspired creativity and helped our community.

Our goal was to raise $3,000 for each charity.

We fundraised $17,764 for our community

 

THE RESULTS:

$3,723 fundraised for the Japanese Cultural Center of Hawaii

$4,188 fundraised for the Make-A-Wish Foundation of Hawaii

$4,557 fundraised for the Hawaii Foodbank

$5,296 fundraised for the Hawaiian Humane Society

Charities we Supported:

Hawaiian Humane Society: Many of us at Occidental Underwriters are big-time animal lovers. A few of us send our fur babies to day care at Pets in the City, right across the street from our office. That being said, we want to protect animals, educate others, and encourage donations to help lost animals and animals in need through the Hawaiian Humane Society. The Hawaiian Humane Society’s mission is dedicated to promoting the human-animal bond and the humane treatment of all animals.

Japanese Cultural Center of Hawaii: The Japanese Cultural Center of Hawaii fosters relations by promoting harmony and mutual understanding between Japan, Hawai‘i, and the United States. Occidental Underwriters has a long-standing history with the Japanese Cultural Center of Hawaii. We are a Japanese-owned 4th generation Insurance Brokerage company with 88 years in the insurance industry. Help support their mission of sharing the history, heritage and culture of the evolving Japanese American experience in Hawai‘i, or get involved by becoming a member of the JCCH ‘ohana.

Hawaii Foodbank: Currently, nearly a quarter of a million Hawaii residents are currently struggling with hunger, according to the Hawaii Foodbank. Among them are out-of-work parents, isolated kūpuna and 1 in 4 keiki. The Hawaii Foodbank is able to stretch your dollars further. Each donation of $10 helps provide food for more than 20 meals.

Make-A-Wish Foundation of Hawaii: Make-A-Wish Hawaii shines a light of hope for local keiki and their families when they need it most. Together, we can create life-changing wishes for children across our islands fighting critical illnesses during their darkest days.

Thank you to everyone for your generosity and support!

family of 4

7 Events That Trigger The Need For Life Insurance

Life insurance is an essential part of any financial plan. While life insurance provides security and protection for your loved ones when you are no longer here, it can also provide a reservoir of cash in some policies. Strategically planning for your future with life insurance ensures that you will have a well-rounded plan for years to come. If plans change, you can buy another policy or cancel an old one.

Living life with life insurance means that you can fully enjoy your time here without worrying about the what-ifs in life, and by providing peace of mind with life insurance, the burden of the unknowns is relieved from your shoulders.

1. Buying your own place

First-time homeowners carry a lot of debt. If you were to pass away while still paying for your mortgage, how would your loved ones pay for the additional cost of owning a house? Life insurance provides protection from life’s unknowns and big what if’s. Instead of your family struggling to pay for your funeral payments, credit card debt, car payments, and mortgage, the insurance company will provide a benefit amount upon your passing which can pay for the entire amount of the house or condo and may even cover your additional debts.

2. Getting married or becoming a couple

Married couples and life partners are likely to both work and contribute to the household income. What happens when one person passes away and the household income decreases, but the same amount of bills need to be paid, plus funeral costs? The survivor is left with the burden of the loss of a loved one and the harsh reality of increased financial obligations. A life insurance policy’s death benefit can be spent in any way the beneficiary likes. Proceeds from a life insurance policy would help the surviving partner maintain their lifestyle by helping to pay bills and debt including mortgage payments, car payments, student loans, and credit card debt.

3. Having or adopting a child

Taking on the new role of parenting, or adding an extra bundle of joy in your life can be both challenging and rewarding. Having a child can also be quite expensive with the typical American family spending $233,000+ raising a child from birth to age 18. For a middle-income family, housing accounts for 29% of costs, 18% for food, 16% for child care/education, according to the USDA. 

Life insurance provides an income should one, or both parents pass away. The life insurance benefit can be used for costs of living including food, housing, child care, and education. If you are a single parent, the life insurance benefit is a financial lifeline for your child should you pass away. 

See this Bankrate guide that covers which financial expenses soon-to-be parents can expect. It includes a breakdown of the different costs to consider when raising a child.

4. Starting a new job or starting a new business

Many employers now offer group life insurance with a few thousand dollars of benefit to cover a small funeral cost, sometimes more. However, this is often not enough coverage especially if you have a family. If you are looking to move jobs, your group life insurance coverage will likely end creating a gap in coverage for you and your loved ones. Having your own individual life insurance policy means you won’t have a gap in coverage when you switch jobs.

If you’re starting your own business, a “key person” insurance coverage will help to protect your business by providing a benefit to replace the lost income and pay for business expenses in case of death or disability. Valued partners and employees have an enormous impact on your business both positively, but also negatively if they cannot perform their job. With a “key person” coverage you can use the benefit to buy out a partner without depleting company cash reserves, or use the cash to pay for expenses and buy time to fill in the gap.

5. Retiring

Life insurance is important in creating a well-structured and well-rounded retirement plan. Permanent life insurance policies provide a reservoir of cash that you can use during retirement through the cash value component. Life insurance is also used for estate planning and may help your beneficiaries pay taxes and legal fees. Consult with your financial advisor on the best plan for your retirement needs.

6. Caring for aging parents

The aging population is living longer, and many people in the United States rely on family members to care for them. This puts an enormous financial and emotional burden on loved ones as they try to cope with their ailing relatives. If you’re providing care for an aging relative, a life insurance policy is essential in making sure you have a backup plan to protect their continuity of care if you pass away.

7. Getting divorced or splitting up

Ending a relationship is a good time to reevaluate your existing life insurance before a divorce is finalized. If your current life insurance coverage lists an ex as a beneficiary, consider excluding them from your list. Don’t forget to review your beneficiaries after splitting up.  In addition, consider purchasing your own life insurance policy, or adding a new one.

What are some factors that influence life insurance rates?
  • Age
  • Gender
  • Health History
  • Family Health History
  • Smoking status
  • Occupation
  • Hobbies

Contact us to schedule a meeting with a licensed agent.

Term Insurance Blog

Term Insurance

Understanding the basics of Term Insurance

Term insurance is straightforward, providing coverage for a set number of years. Typically, term insurance coverage ranges from 5-30 years but can vary depending on the insurance company you purchase from. The length of a policy is determined between your insurance agent and yourself by finding the best solution for your needs.

Is term insurance the right fit for me?

Term insurance is best for those who need coverage but are tight on money and for those who only need coverage for a certain amount of years (i.e., to cover a 30-year mortgage). It provides the most coverage for the lowest premium, meaning you get more for your money. Unlike permanent insurance, there is no cash component, so you won’t have the ability to gain or borrow cash from the policy. You can convert to permanent insurance if your policy allows, so check with your agent!

Types of Term Insurance

Convertible Term: Term insurance that allows the policy owner to convert their policy to permanent insurance without undergoing underwriting, submitting medical exams, or health condition history.

Increasing Term: Term insurance that allows the policy owner to increase the death benefit with time. As the death benefit increases, so do the premium payments.

Decreasing Term/Mortgage Term: Term insurance that decreases over time. Decreasing term insurance is often called Mortgage term because it works to cover the risk of your mortgage if you pass away during that period. The downside is that although premiums are smaller than straight term, the premiums remain constant even though the death benefit declines.

Annual Renewable Term: Term insurance that increases each renewable year. The benefit of the Annual Renewable Term is that the coverage is guaranteed to be approved each year. However, the premiums will also increase too.

Permanent Insurance Blog

Permanent Insurance

Choosing the type of life insurance you need is like picking a new phone. Life insurance policies have many different bells and whistles, each with its own set of unique features.

As an overview, there are two main brands of life insurance: Permanent and Term. Permanent insurance is the oldest type of life insurance and is an umbrella term for life insurance policies that do not expire — think of it as the Bell Telephone, the oldest telephone in the world. Under permanent insurance, there are two main types: whole life and universal life. Permanent insurance offers both a death benefit and cash value.

What is Whole Life?

A whole life permanent policy is the most common type of insurance and is meant to provide protection throughout your lifetime. A key feature of a whole life permanent policy is the ability for the policy to build cash value, which can be used however you want. The cash value is guaranteed to grow based on a calculated amount based by the insurance company, such as 3% interest per year. In general, whole life policies are the least risky since cash value accumulation is guaranteed.

What is Universal Life?

Universal life insurance is increasing in popularity and is more flexible than a whole life policy. Universal life insurance policies provide flexibility but can be confusing at times; however, the benefits are impressive. It allows you to adjust your premium payments and death benefit amount. Universal life insurance offers the ability for the policy to build cash value — this cash value is based on market index performance, such as the S&P 500. The cash value accumulation is not guaranteed.

Types of Universal Life Insurance

Under the universal life insurance branch there is Indexed Universal Life, Guaranteed Universal Life, and Variable Universal Life.

How COVID-19 Affect LI Blog

How COVID-19 has affected the Life Insurance Industry

The life insurance industry relies heavily on in-person interaction. Typically, an insurance agent will meet with you to determine if you are a good candidate for life insurance and shed light on why you would need it. For example, major life event milestones triggering the need for life insurance include buying a house and holding a mortgage, having a child, or getting married.

So what is Life Insurance? The primary purpose of life insurance is to provide a financial safety net to loved ones upon the premature death of the insured person(s). A life insurance policy is a contract between the insurance company and the insured. If the insured passes away within the contract period, the insurance company will pay money, death benefit, to your family. Life insurance is an integral part of sound financial planning.

What does life insurance do for you?

  • Provides income replacement
  • Covers debt and losses
  • Can provide tax benefits
  • Fund a college education
  • Provides peace of mind to you and your loved ones
  • Rounds out your retirement plan

COVID-19 and the Life Insurance Industry

aware

Over the past couple of years, our industry has utilized electronic tools as a proper way to do business. With e-Application processes, expedited underwriting, and the option to get a policy without bloodwork or labs, purchasing life insurance online has never been more efficient and easy. 44% of the population would prefer to get their life insurance quotes online, and 36% prefer to purchase online. With simplified underwriting, you can skip the entire underwriting process — that means no exams, bloodwork, or medical records for qualified individuals. Use our 3 step process and get the coverage you need without the hassle of full underwriting.

COVID-19 has caused people to become more aware of themselves and their loved ones, their mortality, and the long-term retirement risks that they carry. Specifically, life insurance purchases skyrocketed in 2020 within the younger age groups, ages 0-59. However, 80% of millennials say they have limited knowledge of insurance.

At Occidental Underwriters, we provide a wealth of knowledge in insurance services and, with nearly 90 years in the industry, we pride ourselves on providing the best options for you. Speak with an agent today.

SPEAK WITH AN AGENT

Source: “The Future of Life Insurance: Reimagining the industry for the decade ahead” LIMRA and McKinsey & Company. https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/the%20future%20of%20life%20insurance%20reimagining%20the%20industry%20for%20the%20decade%20ahead/the-future-of-life-insurance-final.pdf

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Occidental Underwriters of Hawaii, Ltd.
1163 South Beretania Street
Honolulu, Hawaii 96814
Phone: (808) 536-1933
Fax: (808) 527-8810