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Life Insurance Learning Center. |
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Even though there can be personal advantages to having life
insurance, the real reason is love for those one cares about
the most and the desire to make sure they are well taken
care of. So, applaud yourself for taking the time to learn
about this subject.
Interestingly, while life insurance takes care of the
financial needs and wants of a spouse or the next
generations, it can also develop and build one’s personal
financial goals while living. For example, because of
sufficient life insurance, more assets are made available to
use say, for enjoyment during retirement. Why is this?
Because if you have sufficient life insurance, you won’t
feel that you are lowering the inheritance by spending some
of your earnings and savings (principal). You may actually
“pay down principal” to some degree to yourself.
There are various types of life insurance but they all have
some common attributes. When you pay an insurance company
you are paying what are called "premiums". At your death,
the life insurance company pays an amount to the people you
named in your policy as "beneficiaries". Also, your
beneficiary(ies) receive the insurance amount free of income
tax.
Following are some of the most frequently asked questions
about life insurance: |
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| What types of life insurance are available? |
There are two main types: Term vs. Permanent Life
Insurance:
1) Permanent life insurance is designed to last for your
whole life. There are two main categories: Whole life
and Universal life.
2) Another type of life insurance is Term Life which
varies by length of time from 1 year to 30 years. There
is also a new type of term life policy that refunds all
the premiums that you paid if you keep the policy for
the whole term period. Learn more about Return Of
Premium (ROP) by contacting us at 800.475.2545. |
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How much coverage should I have? |
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The easy answer is you should have enough coverage to replace
the income that you would have earned had you been alive to earn
it. In order to find out how much life insurance you should have
feel free to contact us and ask for a "Needs Analysis". Our life
insurance specialists will provide you with information without
obligation. There is also a very simple method of calculating
the right amount of life insurance for you - take a multiple of
your income that is 10 times to 15 times your annual gross
income. |
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How do I choose the right company? |
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Buying life insurance is a little more complex than purchasing a
car or a television. When you purchase a policy you are buying a
promise, a contract to pay something in the future vs. buying a
commodity or something tangible. It's very important for you to
examine the company that's backing your policy as well as
considering the cost of the policy. One of the important things
to consider when looking at a life insurance company is it's
financial strength rating. Life Insurance Center only quotes
companies that have an (A) rating. To learn more about company
ratings please visit
www.ambest.com |
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Should I get insurance to pay off my mortgage if I die? |
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Getting life insurance to
pay off major obligations in case of death is one of the most
responsible and generous acts of love you can provide. Feel
free to request quotes for inexpensive term life or return of
premium life insurance for the amount of your mortgage. But also
keep in mind the entire amount that is appropriate for you and
your loved ones, not just enough to pay off your mortgage.
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What if I smoke cigarettes or use tobacco, does that affect my insurance rates? |
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The answer is yes it will, but you still can get competitive
rates. Some companies charge less for tobacco use than others.
If you smoke cigars occasionally or chew tobacco occasionally, a
few companies will still offer preferred rates. Contact us at
800.475.2545 so we can get the lowest possible rates that
match your situation. Also, if you have a life insurance policy
that includes a rate for tobacco use, it’s possible to lower it
if you quit for a number of years and remain healthy. |
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Does my weight affect my life insurance rate? |
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There are different rate classes for life insurance. When
calculating the exact rate for you, the company does take your
weight into consideration. Our quoting engine also takes your
height into consideration when calculating your rate class and
premium. Along with your height and weight the insurance
companies also consider your current and past state of health. |
