Insure Your Love

February is known as love month, so this month make sure your loved ones are protected. When shopping for life insurance it can bring up a lot of questions. That is why we've provided answers to some of the most common questions about life insurance to help you make the most informed decisions. 

If you need more guidance, please reach out to our office and we would be happy to assist you.  

Why do I need life insurance?  

• Life insurance is intended to provide financial security for individuals or entities that are dependent on someone else's continued ability to provide income. 
• Most people buy life insurance to replace lost income, but it can also be used as collateral for: 
  • Debt 
  • Providing needed income to carry on a family business 
  • Paying final expenses 
  • Protecting the transfer of your estate to others (by providing funds needed to pay taxes) 

What are the different types of life insurance? 

• There are two basic types of life insurance: 
  • Temporary insurance (Term Life) provides life insurance protection for a specified duration of time ranging from one year to even decades. It can offer lower premiums, but you are only protected for a limited number of years. 
  • Permanent insurance is intended to last for a lifetime, regardless of when death occurs. This insurance can come in the form of Whole Life or Universal Life, and will cover the insured for their entire life then pays a death benefit to beneficiaries whenever the insured dies. 

How much life insurance do I need?  

• Life insurance amounts will depend on your specific situation (annual income, debts, family, etc.). Please reach out and we can determine the amount of coverage you will need within your budget. 

Will my premiums change over time?  

• It depends on the type of policy you select: 
  • Term insurance has the benefit of level premiums for a specific length of time (10, 20, or 30 years). 
  • Whole life insurance premiums will remain the same through age 100. 
  • Universal Life insurance has flexible premiums, but paying less in the early years of the policy could mean you will need to pay more in later years. 

Who is my beneficiary? Why do I need to complete this?  

• As an insurance policy owner, you will select the person or organization that you want to receive the benefits payable from your policy when the insured dies. Selecting the beneficiary is the most important right that you have.  
• Review your beneficiary decisions at least once a year. Make sure that your beneficiary designation fits the needs of your current plan and your beneficiary is eligible to receive the payments (e.g., children who are minors).  
• Please reach out for more information about beneficiaries or if you need to change yours.  

When should I review my life insurance coverage?  

• You should review your life insurance policy after any major life events to help identify changes in your insurance needs. 
• Consider making changes to your policy if you have recently:  
  • Gotten married or divorced  
  • Had or adopted a child  
  • Purchased a new home  
  • Taken on new debt 
  • Had a job change 
  • Had changes in your business  
  • Started planning for your children to attend college  
  • Started planning for your own retirement  
  • Reach out to discuss any recent life changes to ensure you have the necessary coverage.