Who Needs Life Insurance?

If anyone is depending on your income or if you have obligations (debt, mortgage, etc.) that would fall to someone else to handle if you were to die, then the answer is, "Yes." If you don't have life insurance then the costs of your funeral will either come from the sale of your estate or any remaining family. In case there is no family or estate or the family declines to pay for burial then the local government covers the cost. The burial would be bare bones and the costs are covered from taxes. Having minimal life insurance could cover these costs.

What is Term Life Insurance?

Term life insurance provides coverage for a specific period of time, or "term" of years. If the insured person dies within the "term" of the policy and the policy is still in force (active), then the death benefit is paid out to the beneficiary. Many financial experts see life insurance as a tool to "buy time" until you accumulate savings. Term life insurance is generally much more affordable and typically allows clients to initially purchase more insurance coverage for less money (premium) than other kinds of life insurance. The idea is to "Buy Term and Invest the Difference" allowing you to have more money left over to save for your retirement.

Where can I purchase life insurance?

Call now for a free, no obligation quote. it will only take less than 5 minutes. Promise. 561.670.7625

WHEN SHOULD I PURCHASE LIFE INSURANCE?

People sometimes delay purchasing life insurance even though it exists to protect their loved ones' well-being – and they do so for several reasons. Death isn't something we like to think about. Some people have the mistaken belief that there's no hurry. It's always something they can deal with tomorrow. But, tomorrow is never guaranteed. The fact is that the younger you are, and the better your physical shape, the less expensive life insurance will be. According to insurance companies, we don't get younger and we don't get healthier with time, so today is usually cheaper than tomorrow.

Why do i need LIFE INSURANCE?

While everyone is different, some people buy life insurance to cover the costs of their burial and funeral, leave an inheritance, cover expenses (mortgage or loans), or as a substitute for their lost income. Whatever the reason, it gives them peace of mind that they fulfilled their responsibility to their loved ones by taking care of them even in the afterlife. 

HOW MUCH LIFE INSURANCE DO I NEED?

If your family is like most, the answer to that question is probably more than you currently have. Ten times your annual salary is a good rule of thumb.

GROUP INSURANCE THROUGH WORK MAY NOT BE ENOUGH

Group insurance is owned by your employer and usually only covers you while you remain employed. If you leave that job or get laid off, your employer-sponsored coverage could end. If you are on leave for an illness beyond a time specified by your policy you might not be covered. While some group policies allow you to continue your policy after leaving the job, you are no longer part of the "group" and will likely pay individual rates which could be much higher depending on your age and health at the time of separation.

Permanent Insurance and how it really works

The idea behind permanent insurance is that it would cover you until age 100. If you live to age 100 you would get the value of the cash value ONLY. If you die before age 100 your beneficiary would get the death benefit ONLY. The cash value would go back to the insurer.

Most permanent insurance plans (aka Whole Life, IUL, VUL) come with two components. The first component is the insurance. It is usually an annual renewable term life insurance. What this means is that each year the "cost" of the insurance increases. The second component is the cash value. The cash value accumulates as you make your premium payments. 

How it works is that you could pay a steady premium and part of the premium goes toward the "cost" of the insurance and the balance goes to the separate cash account. As the cost of the insurance increases less money is placed in the cash account. If the cost of the insurance exceeds the premium then the cash needed to cover the premium would be pulled from the cash account. In some cases the cash account will be depleted completely causing the policy to lapse.