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Category: Life Insurance

Questions to Ask Yourself Before Getting Life Insurance

Posted on by titan-insurance

Choosing any type of insurance plan can be a daunting task because there are so many factors to consider. What are your risks? How much coverage do you actually need? How much will it cost?

The stakes only get higher when it comes to life insurance, because it’s the one type of insurance that requires your death in order for its benefits to come through. You want your beneficiaries to be protected in the event of your untimely death, but you don’t want to pay exorbitant premiums every year on the off-chance that you live to be 105!

Fortunately, there are solutions for you at all stages of your life. We’ve put together a few questions you should ask yourself when considering life insurance policies, so you can feel comfortable choosing a policy that only covers what you need.

How Healthy Am I?

If you get for an individual life insurance policy (one not offered through your employer), one of the first things you may need to do is take a physical exam. This is good news if you have great health! Being healthy actually keeps your premiums lower, so you will want to opt for an exam when picking your insurance policy.

However, if you have major health issues, there are individual life insurance plans available that do not require an exam. The premiums on these are more than what a healthy person pays with an exam, but you will still be saving money if you know your health problems would seriously increase your premiums. Get a regular check-up to verify how healthy you are before talking to an agent to weigh your options.

Who Are My Beneficiaries?

People depend on you no matter what stage of life you are in, but just how much? The answer to that question will determine so much about your life insurance policy. If you are single with no children and no major debts, you probably won’t need any coverage beyond your group policy, which will cover any funeral expenses and small outstanding debts for your family.

If you are under 40 and in decent health, with a spouse and children, a term life insurance policy is usually a good, inexpensive option. This policy will care for your loved ones in the event of your unexpected passing. It is generally large enough to pay off your home and debts, which gives your family time to grieve and figure out their future finances in peace.

If you take care of a dependent for the duration of their life, such as a special needs family member or elderly parent, their needs will also have to be taken into account when you purchase a life insurance policy.

How Much Life Insurance Can I Afford?

As with any insurance, this really just depends. Group life and term life policies exist for “covering the basics” so to speak. These are usually the most inexpensive policies, and they do a good job at getting your beneficiaries back on their feet.

Permanent life insurance is more expensive. In some cases, it is necessary for making sure a beneficiary with special needs is covered long-term after your passing. In other cases, you may want to look into permanent life insurance if you can afford the higher premium and would like to give your loved ones extra benefits, like premiums that do not increase with changing health conditions, and a good cash value you can use to borrow against throughout your life.

Whatever your needs may be, our agents know the ins and outs of insurance, and we want to answer your questions! Reach out today to start discovering your life insurance options.

Term and Whole Life Insurance: Explained

Posted on by titan-insurance

Life insurance is nobody’s favorite subject of conversation. Most people associate life insurance with expensive monthly premiums and, more importantly, their own mortality. For that reason, many people aren’t sure how life insurance works, or what their options are. However, thinking about your life insurance policy is very important! It is intended to lessen the impact of death on your loved ones, and it doesn’t even have to be expensive. Below, we discuss the major differences between term life insurance and whole life insurance to help you determine which one may be best for you.

 

Term Life Insurance

Term life insurance is a simpler, cheaper type of life insurance that’s a great way to institute a policy without having to cut too deep into monthly expenses. Term life is purchased for a specific time period, anywhere from 5 to 30 years. Death benefits will only be paid if the death occurs during the term of the policy. More often than not, term life will become much more expensive as you age. After the age of 50, the cost of term life quickly creeps up to the cost of permanent life insurance, so you should look into getting it sooner rather than later. Also, these policies can also be converted into whole life insurance in some cases, which is another option if you feel like it may be the time to consider whole life.

 

Whole Life

Term life insurance covers you for a set period of time, while whole life does exactly what you’d expect: it covers you for your whole life! Not only does it provide death benefits when the time comes, but it also provides a cash value accumulation that builds during the life of the policy. This means that you can actually see payoffs of your premium at a certain time, sort of similar to a retirement policy with your employer. It usually takes anywhere from 12 to 15 years to build up a considerable cash value. This cash value is based on how much the return on investment is worth.

 

Acquiring a whole life policy does usually mean a medical examination, but this is not always the case. Sometimes, with a higher premium, whole life insurance can be purchased without a health examination. This type of insurance works great for estate planning, and although it is initially more expensive, you can potentially save money through whole life insurance in the long run. Be sure to see what works best for your finances by speaking with a risk advisor today.

 

Choosing What’s Right

There are many different factors to take into account when deciding what kind of life insurance is right for you. Before speaking with a risk advisor, you should consider several factors:

  • Your current age
  • State of health
  • Financial needs (for yourself and family)
  • Plans for funeral and death expenses
  • Children’s ages
  • Long-term health expenses
  • Mortgage and current debts
  • Retirement plan
  • Future monetary needs of your children
  • Your estate
  • Your thoughts on paying a full term policy and never receiving the value of it

 

Although that may be a long list, factoring in as much as possible is important because life insurance is a big investment. Give our agency a call today so we can help find you the best policy for you and your family.

Group Life vs. An Individual Policy: Which One Is Right For You?

Posted on by titan-insurance

Life insurance is one of those things that most people don’t give much thought to until later in life, although we do recommend younger people explore their life insurance options early. Either way, many people are only on the life insurance policy offered by their place of work. Is that a bad thing or a good thing? Well, that depends. Take a look at some pros and cons of both types below.

 

Group Life Pros & Cons

The base life insurance you receive from your employer is typically 1-3 times the amount of your salary at no cost to you! This is a good cushion for anyone, and a good life insurance plan period if you’re single with no major payments or debts for your beneficiaries to pick up. You also don’t have to go through a medical exam or provide medical records to qualify for coverage on a group life policy, so any preexisting medical conditions won’t count against your premium.

 

However, if you have dependents, your needs will be drastically different. They may need to live on the money from your policy, or pay off your mortgage or student loans, along with using it to pay for a new health insurance plan if theirs was previously covered by your employer. Suddenly, that 1-3 years salary doesn’t stretch very far. In order to cover your beneficiaries properly with your group plan, you would need to pay an additional premium through payroll deduction.

 

With group plans, your premiums tend to be higher because no one on the plan is required to undergo a medical exam. The contract also has to be renewed every 5 years, so it is likely that they will be renewed for higher rates. Lastly, if you ever leave your place of employment, you can’t take your life insurance policy with you. This leaves you and your beneficiaries completely unprotected until you find another job.

 

It is also important to remember that life insurance is a benefit, not a guarantee. If your company needs to make budget cuts, your life insurance policy could be done away with — even if you’ve been paying for additional coverage.

 

Individual Policy Pros & Cons

An individual policy is just that — it is written for you based on your health and financial goals. Unlike a group policy, you have control over your individual plan and can take it with you wherever you go. You can insure your life for much more than 1-3 times your yearly salary, and know that the monthly premium will be locked in for the duration of the policy so there won’t be any surprise rate increases.

 

You will need to pass a medical exam to qualify, but whether or not this is a pro or con depends entirely on your health. If you are a healthy individual with no preexisting medical conditions, you can benefit from a lower premium. Even if your end premium is higher than what you would pay for additional coverage through your company, your beneficiaries will be insured for much more money in the event of your passing, and you can rest easy knowing that your policy isn’t going anywhere.

 

Barring a small percentage of single people with no major payments or debts, the average person will need to pay some kind of premium in order to be properly covered by their life insurance plan. Our agents understand the ins and outs of these policies, and we are here to help you determine what works. Contact us today to get started on a life insurance plan that is right for you.