You never know what is going to happen tomorrow. That is why it is essential to have life insurance. If something happens and you are no longer around, your loved ones will be cared for financially. The Annuity Expert Insurance Agency makes it easy to get a free life insurance quote online. We have various life insurance policies to choose from, so you can find the one that fits your needs and budget. So get peace of mind today and contact us for more information!
- What Is Life Insurance?
- Do I need life insurance?
- How Much Life Insurance Do I Need?
- The Benefits Of Life Insurance
- Life Insurance Pros And Cons
- What Are The Different Types Of Life Insurance?
- What Is The Best Life Insurance Policy For Me?
- Why Do You Need Life Insurance?
- Next Steps
- Need Help Buying Life Insurance?
- Frequently Asked Questions About Life Insurance
- Related Reading
What Is Life Insurance?
A life insurance policy is a contract in which the Policyholder pays periodic premiums to the insurer in exchange for a death benefit. The lump-sum benefit is paid out upon the Policyholder’s death or after a set period has elapsed. Therefore, having a policy gives your beneficiaries financial stability even when you’re no longer around to support them monetarily.
We understand that safeguarding your family is essential to you. Annuity Expert Insurance Agency offers budget-friendly life insurance policy options to fit your loved ones’ needs. To get started, request a life insurance quote online.
How Does Life Insurance Work?
Your life insurance policy comes with a death benefit- a set amount of money your loved ones will receive after you die. This money can be used for any expenses or debts they may have, giving them some financial security during difficult times.
What do you need to start a life insurance quote?
- Outstanding financial obligations (mortgage, loans, etc.)
- Medical conditions
- Income and occupation
- Basic medical information (height, weight, blood pressure, cholesterol levels)
How much does a life insurance policy cost?
Many people think life insurance costs are set in stone, but they vary depending on circumstances. For example, your insurer will consider your medical history and what leisure activities you enjoy before setting a price.
Do I need life insurance?
Life insurance is crucial for anyone with loved ones they want to protect in the event of their death financially. The key is finding a policy that fits you, which we can help you do whether you need just the basics or a lot of coverage.
If you’re wondering how life insurance can help your financial dependents, here are five ways:
- Paying for funeral expenses, which continue to rise in cost
- Making up for lost wages or the value of time spent as a stay-at-home spouse
- Using it as a debt payoff
- Planning and funding a college education
- Leaving an inheritance
How Much Life Insurance Do I Need?
If you want an estimated amount, most professionals recommend getting life insurance worth 10-15x your current income. This is because the final cost of life insurance coverage rates is primarily based on several factors, with health having the most significant impact.
The Benefits Of Life Insurance
Life insurance policy benefits include:
- Provides financial protection for families, key employees, and businesses after unexpected life changes, giving peace of mind.
- Offers peace of mind for those purchasing their first house and protection of financial needs regarding mortgage payments and property taxes.
- The proceeds at death are income tax-free to beneficiaries.
- Loans can provide tax benefits such as tax-free income for your retirement years, pay for college tuition, or a safety net for unexpected financial hardship.
- The coverage can leverage the life insurance death benefits while alive to pay for eldercare expenses, including nursing homes, assisted living, home healthcare, and hospice costs.
- Coverage options can pay for final expenses such as medical bills and funeral and burial costs.
- Specific policies can be utilized as a college savings plan to pay for tuition in the future.
Life Insurance Pros And Cons
- Term life insurance rates are cheaper and will never increase.
- Permanent policyholders can build cash value over time without paying taxes.
- Cash values can be borrowed without a credit check.
- You can withdraw money from a permanent life insurance policy.
- When buying life insurance, a medical exam is required in most cases.
- Permanent coverage is more expensive than a term life insurance policy.
- The cash value growth of a whole life policy is slower than other life insurance options.
- The premiums for whole life insurance are higher than those of term life.
- The Policyholder will be charged interest on any loans against the policy.
- You may have to pay taxes on the money you withdraw from your cash value.
- Permanent coverage is more complicated than term life insurance
- Variable universal life insurance coverage can cause a loss of money from poor investment performance.
- Not all insurance companies have the best claims-paying ability. Using a licensed agent can help you find the best life insurance company for your scenario.
What Are The Different Types Of Life Insurance?
There are two types of life insurance: term and permanent. The term only protects you for a set period, while permanent is lifelong coverage.
What is Term Life Insurance?
Term life insurance is a policy that pays out a death benefit to your beneficiaries if you die within the specified term, typically between 10 and 30 years long. The money from the policy can be used for any number of expenses, like bills, future costs, or burial costs. With some companies, you may even be able to get term life insurance without taking a medical exam; instead, they will ask you questions in detail about your health.
What is Whole Life Insurance?
A whole life insurance policy covers you for your entire life and benefits your beneficiary upon death as long as the policy terms are met. In addition to income replacement and estate planning, these permanent life insurance policies may also provide supplemental income. In addition, the policy has a savings component called “cash value” that accrues interest without being subject to taxes.
What is Universal Life Insurance?
Universal life insurance is a permanent life insurance policy offering an optional fund to contribute above and beyond your standard life insurance. The cash value can build over time, but index and variable universal life insurance premiums can fluctuate.
What Is The Best Life Insurance Policy For Me?
Term Life Insurance Policy
The primary breadwinner, stay-at-home parents, homeowners, and business owners can benefit from term insurance.
Whole or Universal Life Insurance Policy
Whole or universal life insurance can benefit people who want to leave an inheritance and those with a high net worth. This type of life insurance can also pay for funeral expenses.
Why Do You Need Life Insurance?
Long-term financial security for your family is possible with life insurance. Of course, you can’t put a price tag on your loved ones, but term life insurance allows you to plan for when they need it most. At The Annuity Expert Insurance Agency, we customize policy options to determine how much coverage you need and fit it into an affordable budget that works best for you and your family. Get started today by getting a free online quote!
Helpful Tip: If you need a cheap service to set up your entire estate plan, we recommend:
If you don’t have a policy, now is the time to purchase life insurance. You never know what could happen tomorrow; if something happens to you, your loved ones will be cared for financially. The Annuity Expert Insurance Agency makes it easy to get a free life insurance quote online. We have various life insurance policies to choose from so you can find the one that fits your needs and budget. So get peace of mind today and contact us for more information!
Need Help Buying Life Insurance?
If you have a preexisting medical condition and want to buy life insurance, you will need help from an expert. This person can help ensure you get coverage so you don’t get declined.
Warning: Applying for life insurance without a medical exam can be risky. If you get declined coverage, it could be at least two years before you can get any life insurance.
Frequently Asked Questions About Life Insurance
What is the purpose of having life insurance?
Life insurance allows you to ensure that your family is taken care of financially during your death. This type of security comes in three forms: Term life insurance, whole life insurance, and universal life insurance.
At what age should you get life insurance?
Life insurance can benefit people at any stage of life, especially those with others depending on them. Learn more about who stands to benefit from life insurance and how it fits into different stages of life.
How often should I review my life insurance policy?
Review your life insurance policy every five years or after any significant changes to ensure you and your family are still adequately covered.
What is the average life insurance cost per month?
The average cost of life insurance is $18 a month, as provided by The Annuity Expert. So this policy would be for a 35-year-old buying 20 years of coverage for $500,000, the most common term length and amount sold. Life insurance rates will produce various results among applicants, insurers, and types of policies, though.
What is a reasonable price to pay for life insurance?
You should expect to pay between $25 and $50 monthly for term insurance with the best life insurance companies. Be sure to shop for life insurance quotes.
What is the most common type of life insurance?
Term life insurance is a type of insurance that covers you for a set period, known as the “term.” If you were to die during this term, your loved ones who depend financially on you would receive money from your policy.
What is better, term or whole life?
Parents with small children should buy life insurance that is the most affordable. Those who need lifelong coverage should purchase whole life insurance. Every decision is different for each person, so they should gather the information to help them make a choice leading to financial security.
What is the difference between whole life and term life insurance?
Term life insurance is only active for a set duration, while whole life insurance lasts until you die. If you keep up with your premium payments, that is. The premiums go into a death benefit fund which will be dispersed to your beneficiaries upon passing.
What type of life insurance builds cash value?
Universal and whole life insurance are permanent policies that feature cash value growth over time on a tax-deferred basis. The insurer invests the premiums you pay into this savings element.
Are life insurance payouts taxed?
Though a life insurance payout is not considered taxable income, anything the policy has gained in interest will be taxed. Additionally, any money inherited by beneficiaries is also tax-free. To prevent paying taxes on proceeds, taxpayers list beneficiaries on their policies. However, if they want to transfer ownership of the policy to someone else at any point, they must first get permission from the IRS.
How long do you pay for life insurance?
A term policy that can provide financial security for your loved ones during your death. The typical policy lasts 10-30 years, and you pay premiums regularly. If you die at any point during the policy period, the insurer will give a cash sum to your beneficiaries.
Can you cash out life insurance?
If you need cash and are a policyholder, you can take a loan from your permanent policy. By taking cash from their life insurance policy through a loan, the Policyholder borrows money against the death benefit that will be paid to beneficiaries upon their death. If repaid in full, the beneficiary will receive the total amount of coverage; however, if Policyholder dies with an outstanding balance owed on the loan plus interest), that unpaid debt, plus any accumulated interest, will reduce what is paid to the Beneficiaries from proceeds of the death benefit.
Do life insurance policies expire?
Term life insurance policies have an expiration date, after which the policy matures and your coverage ceases. You can typically only own a term policy for a specific period; this period usually lasts between 5 and 30 years, depending on your policy. Most term life insurance policies can be renewed yearly until you reach the age of 95.
Does life insurance cover suicidal death?
Most plans have a suicide clause which states that the insurance company will not payout if the Policyholder takes their own life within the first few years after obtaining the policy. If you switch your plan to another one, it resets this period back to square one. If life insurance companies investigate and think that suicide may be what caused someone’s death, they would ask for more documentation to rule out that option before considering any benefits.
Can you change your life insurance at any time?
While you may be able to cancel your existing policy and purchase a new policy, a financial professional may advise against doing so. You’ll want to examine your needs and budget before making this decision.
How do you use your life insurance while alive?
There are three ways to get money from your policy while you’re still alive:
First, get a loan, make withdrawals, or surrender your policy. Second, apply for living benefits such as medical expenses and long-term care costs coverage. Third, sell your policy in a life settlement to receive cash now while continuing coverage until death.
Does life insurance pay for funeral costs?
After you pass away, the policy you have in place will pay a lump sum to whoever you named as the beneficiary. In the event of your death, this money can be used by your beneficiaries for funeral expenses or any other type of bill they might have.
What happens if a life insurance policy owner dies before the insured?
Someone else has to become the new owner of the policy until the death of the insured results in proceeds being paid out to a beneficiary.
Who does the life insurance go to if I do not have a will?
The money becomes part of your estate if you don’t name a specific person to receive your life insurance policy proceeds. The money will be distributed with your other assets when you die. This process is typically lengthy and costly, going through probate before your heirs can receive anything.
Can you use life insurance for anything?
Permanent policies have many uses, such as providing extra retirement income or taking out loans from the policy’s cash value with tax advantages. In addition, indexed and variable life insurance policies are often marketed to create an income stream.
Is life insurance better than savings?
Unlike savings account holders, who are taxed yearly on their interest, they are not policy owners of whole life insurance reinvesting their cash value. Additionally, you can gain income tax-free by borrowing against your principal.
What reasons will life insurance not pay?
If you die of natural causes, your tax-free death benefit will payout. However, if fraud is committed or you die under certain excluded circumstances, such as suicide within the first two years, your policy might not be honored.
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*Disclosure: Some of the links in this guide may be affiliate links. I may receive a commission at no cost to you if you purchase a policy. It helps us keep the lights on!