Your life insurance can cover expenses should you pass away. These expenses include monthly bills, groceries, mortgage debt, credit card debt, student loans, auto loans, childcare, college funding, and end-of-life expenses. Life insurance can also be used for business including a buy-sell agreement or to protect from the loss of a key person.
A beneficiary is a person or entity you name in a life insurance policy to receive the death benefit. You aren’t limited to one person as your beneficiary. In fact, you can name one person, multiple people, a trust/trustee, charity, or your estate. You can even have contingent beneficiaries in case something happens to the beneficiaries you initially choose. It’s a good idea to let your beneficiaries know that you are providing them a safety net should you pass away during your coverage.
Yes! Owning multiple life insurance policies is beneficial as you age and need additional coverage. Some reasons for buying multiple insurance policies include buying a house, having a child, and getting married, just to name a few.
Term insurance is exactly what you think! It’s insurance that is intended to last for a “term” or a specific period of time, usually between 10 and 30 years. It’s the most affordable life insurance you can buy, providing the most coverage for the least amount of premium.
Insurance companies determine premiums based on various factors such as age, gender, health history, location, and occupation. The premium for the same amount of coverage (i.e. $500k) can vary from insurance company to insurance company.
A permanent life insurance policy is intended to cover the insured for life. It also includes a “cash value” component that can grow (or shrink) over the life of the policy. The cash value can be used to pay for unexpected events. There are several different types of life insurance: whole, universal, variable, and variable universal.
If you have a pre-existing health condition, you could still get coverage. While it may not disqualify you, it’s important to know that it may slim down your choices in coverage and you may need to pay higher premiums. Some pre-existing conditions include: asthma, cancer, depression, diabetes, epilepsy, gastroesophageal reflux disease (GERD), high blood pressure (hypertension), high cholesterol (hyperlipidemia), HIV/AIDS, heart disease (heart attack/stroke/etc.) and obesity.
Step 3: Determine what type of life insurance best meets your needs (i.e. Whole life vs. Term Policy). A while life policy may be better if you want insurance to last as long as you live and want the option to accumulate cash value. If you’re looking for coverage for a specific period of time or are looking for the most coverage for the least amount of premium, term may be a better option.
Step 4: Shop around. Life insurance quotes can be significantly different in pricing depending on the carrier you buy from. Ask us for a quote!
Step 5: Purchase a policy and tell your beneficiaries.
Most policies consider you disabled if you are unable to perform the duties of your job due to sickness or accidental injury. Each policy is different, so it’s essential to go over the benefits of each policy with an agent.
Disability insurance provides a portion of your income, about 60% or more if you can’t work due to illness or injury. Generally, individually paid policies receive disability benefits tax-free. Disability insurance helps to provide a cushion of support when you need it most. The tax-free benefit amount can be used to pay for essentials, so you don’t have to dip into your savings. This includes any household expenses such as your mortgage, car payments, groceries, and payments toward education.
Disability insurance cost is dependent on the income you make, your occupation, and job duties. For example, a carpenter doing physical work would pay more than a lawyer making the same income amount because of the risk of acquiring a disability.
You have the choice to pay for your disability insurance in monthly, quarterly, or annual installments — monthly being the most common. Disability insurance benefits can vary from policy to policy. We recommend you call our office for more information.
Critical illness insurance offers additional protection to your health insurance and pays out in a lump sum. If you have critical illness insurance and disability insurance, you could be paid out for both where the critical illness leads to a disability. For example, you experience a heart attack and are disabled, leading you not to be able to do your proper job functions. In this case, you are considered disabled, and your disability insurance will kick in.
It’s never too early to look at long-term care insurance, especially if you have experienced a long-term care-related event in your lifetime. Premiums are lower for those in their 40s and 50s than those over age 65. After age 60, long-term care insurance premiums begin to increase drastically.
It’s unlikely that this individual will qualify for long-term care insurance coverage due to cognitive deterioration. Some may consider coverage for people with acceptable health conditions but will charge them with a higher premium.
You’re eligible for benefits for most policies if you are severely cognitively impaired or unable to perform two out of the six Activities of Daily Living (ADLs). The ADLs are bathing, caring for incontinence, dressing, eating, toileting (getting on and off the toilet), and transferring (getting in or out of a bed or chair).
It is a long-term care policy with a life insurance component to protect against losing all premiums paid if you die without using the policy while also providing LTC coverage above and beyond the death benefit. It differs from a typical life policy with a rider because a life policy with a rider only has one bucket to access LTC benefits; the death benefit. A hybrid policy allows you to access money from the death benefit and a continuation of benefits bucket.
Medicare and regular health insurance only pay for medical expenses. Medicaid only pays for nursing home care, but you must spend most of your savings first before you qualify. Regular health insurance also doesn’t cover long-term care, and if you don’t have insurance to cover long-term care, you’ll have to pay for it yourself in most states.
Annuities have tax-deferred status. Tax-deferred in this instance means that while interest accrues, they are not taxed until they are withdrawn. This helps to increase the earnings in an annuity account.
You or your beneficiaries are guaranteed to get at least the amount you paid into the policy. If you pass away before the total amount is paid out, your beneficiaries will typically receive the remaining payments either in lump sum or stream of payments. However, each policy can be structured differently.
Annuities have guaranteed interest rates on the fixed side and offer a lifetime stream of income. Mutual funds follow market conditions and carry a higher risk of losing income and interest. Annuities also can grow tax-deferred over time.
Typically, annuity owners can withdraw money from their annuity starting at age 59 ½ without paying an early withdrawal fee. Some annuity contracts offer a surrender period or an amount of time that the owner must wait before withdrawing money from their account. If money is withdrawn before the surrender period is complete, they will be subject to a surrender charge.
Critical illness insurance covers a variety of the most common illnesses, often serious and life-threatening. These often include heart attack, coronary artery bypass surgery, angioplasty, stroke, invasive cancer, non-invasive cancer, kidney (renal) failure, major organ transplant, Alzheimer’s disease, paralysis, and coma.
The most common types of critical illnesses include heart attack, cancer, and stroke. These medical emergencies often incur a greater-than-average cost, and critical illness insurance helps cover those costs. Critical illness insurance helps fill in the spaces where traditional health insurance may fall short, so you don’t have to pay out-of-pocket medical expenses.
A $30,000 policy can help eliminate two years of medical expenses so you can use your remaining income to pay for other necessities. A policy with a $30,000 benefit amount could cost less than $1 a day. However, a higher benefit amount can further reduce the financial burden of a critical illness in your lifetime. For reference, a typical critical illness coverage amount ranges from $10,000-50,000. Please speak with one of our agents to find out how much coverage you need.
You have the choice to pay for your critical illness insurance in monthly, quarterly, or annual installments — monthly being the most common. If you are diagnosed with a critical illness, the insurance companies we work with will pay you in a lump sum for any of their covered critical illnesses listed in the policy you purchase.
Critical illness insurance offers additional protection to your health insurance and pays out in a lump sum. If you have critical illness insurance and disability insurance, you could be paid out for both where the critical illness leads to a disability. For example, you experience a heart attack and are disabled, making you unable to do your proper job functions. In this case, you are considered disabled, and your disability insurance will kick in and pay you monthly