Need an affordable
Life Insurance Plan?
Find an Affordable Life Insurance Plan that's right for you.
Need an affordable
Life Insurance Plan?
Find an Affordable Life Insurance Plan that's right for you.
Life Insurance
Life Insurance is an important feature to provide your dependents with regular payments that replace your income if you die. Life insurance provides a certain amount of money, according to the coverage you buy.
The best thing that Life Insurance provides is the reassurance that your dependents won’t be burdened with massive debts when you’re no longer there to support them. That means that no one will have to struggle to pay debts or be forced to sell any assets.
You may think that these funds can be put to better use, but the life insurance benefit is highlighted during accidents or unfortunate events. It is mainly a lifesaver to protect your beloved ones and maintain their quality of life.
Why do I need Life Insurance?
Life insurance is an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The cash provided by life insurance also can help ensure that your dependents are not burdened with significant debt when you die.
Life insurance proceeds could mean your dependents will not have to sell assets to pay outstanding bills or taxes. An important feature of life insurance is that generally, no income tax is payable on proceeds paid to beneficiaries. The death benefit of a life policy owned by a C corporation may be included in the calculation of the alternative minimum tax.
How much Insurance do I need?
Before buying life insurance, you should assemble personal financial information and review your family’s needs. There are a number of factors to consider when determining how much protection you should have. These include:
- any immediate needs at the time of death, such as final illness expenses, burial costs and estate taxes
- funds for a readjustment period, to finance a move or to provide time for family members to find a job
- ongoing financial needs, such as monthly bills and expenses, day-care costs, college tuition or retirement
Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, one rule of thumb used is buy life insurance that is equal to five to seven times annual gross income.
Choosing A Plan
Buying life insurance is an important decision to make to secure the future of your family and beloved ones. When you start to pay your premiums, you’re typically buying their comfort, future financial security, and protection when you’re not there anymore.
This life insurance protects their home, company business, and overall stability of their lives. Over the years, your needs and family situation will evolve and you must consider your ever-changing life goals.
This will help you choose the right life insurance plan that matches your reality and goals, ensuring proper coverage.
There are two types of life insurance to consider:
Term Insurance
Term Insurance offers coverage for a specific period of time and pays only if death occurs during the policy term. There are two main types of this life insurance, which are Level Term and Decreasing Term.
Permanent Insurance (Whole life)
Permanent Insurance offers lifelong protection and pays whenever you die, no matter how long you live.
There are three main types of this life insurance, which are Traditional Whole Life, Universal Life, and Variable Universal Life.
Before you make a decision, you must go through your financial situation and study your family’s needs. Many factors must be taken into consideration before you settle down for which protection level you need.
Before buying life insurance, consider the following:
Any immediate expenses that will be needed at the time of death, including illness expenses, estate taxes, and burial costs.
Funds to cover the readjustment period (cover a move expenses or secure some time for family members to get a job)
Any financial needs to be secured, including monthly bills, day-care costs, college tuition, and more.
Although there are no specific calculations to identify exactly the coverage you need, normally the policy to consider must be five to seven times your annual gross income.
Additional Points
What happens if I fail to make the required payments?
If you miss the premium payment, you are given a 30- or 31-day grace period to pay the premium. Skipping the grace period, the policy will lapse unless your policy’s provisions allow you to reinstate. There is another option that the insurance company can choose with your authorization to keep the policy going.
If you have sufficient cash in your policy, the company can withdraw the required value to compensate for the fees. This doesn’t apply except in some flexible premium policies because in most cases, there isn’t any cash to draw from in the first place. If it is possible, the premiums can be reduced or skipped because the policy will have sufficient cash.
What if I become disabled?
Some additional benefits can be added to amend the terms of the policy according to provisions or riders. One rider provides the insured parties with a “waiver of premium” for disability. This rider waives any premium fees for a specific duration if you become permanently or temporarily disabled.
Are other riders available?
Yes, there are different available riders, which are:
- Accidental death benefits: This rider offers an additional benefit in case of death due to a sudden accident. This additional rider requires additional fees if available.
- Accelerated benefits: This rider is also known as “Living benefits” because it allows you to receive the benefits of your insurance before you die. This only occurs in case of terminal illness, catastrophic illness, or long-term care in a nursing home. This additional rider may require additional fees if available.
- Child rider: This rider covers insurance for all of your children with death benefit from $1,000 to $20,000. This rider requires additional fees if available.
When will the policy be in effect?
Before you purchase the policy, you must understand when the policy will start working. Sometimes, the insurance becomes effective on a date different from the company’s issue date.
Accelerated Death allows policyholders to receive a part of the policy’s proceeds when they are still alive under some conditions; terminal illness or admission to a nursing home. But, these payments may affect the Medicare allowance through deductions taken from the beneficiaries’ benefits later on.
Thus, the policyholder must understand the rider policy and consider their options before making a decision.
The applicants undergo medical tests that give precise information about their health condition. Consequently, the insurance company charges the insurers the right premiums that suit their state. Some health conditions are easily handled through suitable medication, therapy, or different lifestyles. All this information may allow the insurance company to accept coverage for applicants who shouldn’t be insured. On the other hand, medical tests can identify incurable conditions, huge risks, or diseases that the company can’t afford.
- You must add a secondary beneficiary in case you live longer than the first beneficiary mentioned in your policy
- Make sure to name a specific beneficiary to be paid immediately to your family upon your death. In case it is paid to your estate, it will take much time for your beneficiary to receive as it goes through probate with all your other assets.
- Always be clear in assigning your beneficiary names so you won’t exclude anyone. If your beneficiary dies before you, this may cause a problem if you didn’t change the beneficiary designation. If you remember to do so, the proceeds will go immediately to the beneficiary’s child.
It is not always wise to change or drop an in-force policy. If you decide to do so, make sure that your new policy is in effect. Also, bear in mind the following:
- What is your health condition? Check the change in your health conditions over the years because you may not be still eligible for standard rates.
- Are the two policies paying the same dividends?
- Is the cash value of the new policy as large as the original one? Check if there is a surrender charge applicable to the original policy.
- What is the difference between the two policies regarding premiums, death benefits, and cash surrender value? Always make a breakdown of both before you decide.
- Is the new policy already in force? Make sure of this point before you cancel your original policy if you want to reduce the policy’s value
Life Insurance
Life Insurance is an important feature to provide your dependents with regular payments that replace your income if you die. Life insurance provides a certain amount of money, according to the coverage you buy.
The best thing that Life Insurance provides is the reassurance that your dependents won’t be burdened with massive debts when you’re no longer there to support them. That means that no one will have to struggle to pay debts or be forced to sell any assets.
You may think that these funds can be put to better use, but the life insurance benefit is highlighted during accidents or unfortunate events. It is mainly a lifesaver to protect your beloved ones and maintain their quality of life.
Why do I need Life Insurance?
Life insurance is an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The cash provided by life insurance also can help ensure that your dependents are not burdened with significant debt when you die.
Life insurance proceeds could mean your dependents will not have to sell assets to pay outstanding bills or taxes. An important feature of life insurance is that generally, no income tax is payable on proceeds paid to beneficiaries. The death benefit of a life policy owned by a C corporation may be included in the calculation of the alternative minimum tax.
How much Insurance do I need?
Before buying life insurance, you should assemble personal financial information and review your family’s needs. There are a number of factors to consider when determining how much protection you should have. These include:
- any immediate needs at the time of death, such as final illness expenses, burial costs and estate taxes
- funds for a readjustment period, to finance a move or to provide time for family members to find a job
- ongoing financial needs, such as monthly bills and expenses, day-care costs, college tuition or retirement
Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, one rule of thumb used is buy life insurance that is equal to five to seven times annual gross income.
Choosing A Plan
Buying life insurance is an important decision to make to secure the future of your family and beloved ones. When you start to pay your premiums, you’re typically buying their comfort, future financial security, and protection when you’re not there anymore.
This life insurance protects their home, company business, and overall stability of their lives. Over the years, your needs and family situation will evolve and you must consider your ever-changing life goals. This will help you choose the right life insurance plan that matches your reality and goals, ensuring proper coverage.
There are two types of life insurance to consider:
Term Insurance
Term Insurance offers coverage for a specific period of time and pays only if death occurs during the policy term. There are two main types of this life insurance, which are Level Term and Decreasing Term.
Permanent Insurance (Whole life)
Permanent Insurance offers lifelong protection and pays whenever you die, no matter how long you live. There are three main types of this life insurance, which are Traditional Whole Life, Universal Life, and Variable Universal Life.
Before you make a decision, you must go through your financial situation and study your family’s needs. Many factors must be taken into consideration before you settle down for which protection level you need. Before buying life insurance, consider the following:
Any immediate expenses that will be needed at the time of death, including illness expenses, estate taxes, and burial costs.
Funds to cover the readjustment period (cover a move expenses or secure some time for family members to get a job)
Any financial needs to be secured, including monthly bills, day-care costs, college tuition, and more.
Although there are no specific calculations to identify exactly the coverage you need, normally the policy to consider must be five to seven times your annual gross income.
What happens if I fail to make the required payments?
If you miss the premium payment, you are given a 30- or 31-day grace period to pay the premium. Skipping the grace period, the policy will lapse unless your policy’s provisions allow you to reinstate. There is another option that the insurance company can choose with your authorization to keep the policy going.
If you have sufficient cash in your policy, the company can withdraw the required value to compensate for the fees. This doesn’t apply except in some flexible premium policies because in most cases, there isn’t any cash to draw from in the first place. If it is possible, the premiums can be reduced or skipped because the policy will have sufficient cash.
Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, one rule of thumb used is buy life insurance that is equal to five to seven times annual gross income.
Additional Points
What happens if I fail to make the required payments?
If you miss the premium payment, you are given a 30- or 31-day grace period to pay the premium. Skipping the grace period, the policy will lapse unless your policy’s provisions allow you to reinstate. There is another option that the insurance company can choose with your authorization to keep the policy going.
If you have sufficient cash in your policy, the company can withdraw the required value to compensate for the fees. This doesn’t apply except in some flexible premium policies because in most cases, there isn’t any cash to draw from in the first place. If it is possible, the premiums can be reduced or skipped because the policy will have sufficient cash.
What if I become disabled?
Are other riders available?
When will the policy be in effect?
Accelerated Death allows policyholders to receive a part of the policy’s proceeds when they are still alive under some conditions; terminal illness or admission to a nursing home. But, these payments may affect the Medicare allowance through deductions taken from the beneficiaries’ benefits later on.
Thus, the policyholder must understand the rider policy and consider their options before making a decision.
Medical tests can provide accurate and current information about an applicant’s health, thus enabling insurers to charge premiums that reflect the level of risk an applicant represents.
Because some health conditions are easily managed through proper medication, therapy or lifestyle changes, medical information sometimes makes it possible for insurers to cover applicants who might not otherwise be insurable. More serious or incurable conditions present an enormous risk that an insurer simply cannot assume.
