How Do I Know If I Need Life Insurance?
Life insurance is a safe, simple way to guarantee that the people who depend on you now will be taken care of after you’re gone. Beneficiaries receive a tax-free cash payment that ensures their standard of living and way of life does not suffer. Please, don’t make a tragic situation even worse by failing to plan now. If you are the primary earner in your household, life insurance is not an option. It’s a responsibility.
How Do I Know How Much Coverage I Need?
While experts disagree on the exact formula for income replacement, most estimate that, at a minimum, a person needs coverage equal to six times their annual income. Ultimately, the only “wrong” answer is no coverage at all.
Contact your Kimberley Vassal Insurance Services, Ltd. & Coe Insurance Services agent today, and they can assist you with balancing future needs with your current financial capabilities.
Can I Use Life Insurance While I’m Living?
Terminally ill patients can forgo their death benefit in exchange for a payment equal to the life insurance policy’s face value.
Take advantage of group rates and the convenience of direct billing by taking your life insurance plan with you when you retire or switch careers.
Waiver Of Premium
This feature allows you keep your coverage even if you become seriously ill or disabled and are unable to pay your premiums.
By paying in excess of your regular premiums, some policies allow you to increase the amount of your death benefit. Likewise, cash accumulation can also be used to increase the loan amount available to policy holders while they are living.
What’s The Difference Between Term And Permanent Life Insurance Coverage?
The risk with buying term life insurance is that the policy holder may “outlive” the coverage. When this happens, the policy terminates, and you are given the option to renew. However, the new premiums will most certainly be higher, because you have aged. Still, term life insurance is an attractive option for many people, because it allows them to buy coverage at a lower cost and when it’s needed most.
Permanent life insurance, on the other hand, offers lifetime protection as long as you continue to pay your premiums. All age groups can take advantage of the security and peace of mind that permanent life insurance offers. Retirees can guarantee that their loved ones will be provided for after they are gone, and young people looking to start a family can take advantage by buying early and locking in a great, low rate.
In some instances, a combination of both term life and permanent coverage is desirable. Contact your Kimberley Vassal Insurance Services, Ltd. & Coe Insurance Services agent today to determine which solution is best for you.
Can I Borrow Money Against My Life Insurance Policy?
Term life insurance policies, on the other hand, do not have a loan option available, because they do not accrue cash value. This is why these types of policies are commonly referred to as “Death Benefit Only” policies.
Can The Same Person Have More Than One Life Insurance Policy?
What Should I Consider In Naming My Beneficiaries?
As a precautionary measure, you will also need to designate “contingent” or secondary beneficiaries in the event that you outlive your primary beneficiaries. You should take the time to review your beneficiaries annually as they can be changed throughout the life of the policy for any reason.
If you have additional questions regarding the process of choosing your beneficiaries, please contact your agent, and they will be happy to assist you.
Is A Physical Exam Always Required To Obtain Life Insurance?
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