Skip to main content

061322 What to Know About Life Insurance…

Millions of adults go to great lengths to protect their assets.

Those measures run the gamut from simple everyday efforts like utilizing

two-factor authentication when accessing financial accounts via online or

mobile banking apps to more complicated undertakings like estate planning.

Life insurance is a component of estate planning that is vital to anyone

looking to protect their assets in the event of their death.

 

Explaining life insurance

 

Life insurance is both similar to and different from other types of insurance.

Like homeowners and auto insurance policies, life insurance provides

financial protection in difficult circumstances. A life insurance policy is a

contract between an insurance provider and a policy holder that guarantees

a payout to beneficiaries designated by the insured individual in the wake of

that individual’s death.

 

Personal history

 

Insurance providers differ, but individuals interested in life insurance can

expect to be asked about their medical histories and lifestyle habits when

discussing policies. Prospective policy holders will often be asked to sign

waivers that allow providers to access their medical records. This is

necessary so companies can get an idea of the health of the person applying

for life insurance, which will determine the cost of a policy. That information,

as well as family history, is important because it can serve as an indicator of 

future health risks. Some variables, including lifestyle habits like smoking,

won’t necessarily appear on an individual’s medical history. In an effort to

address that, insurance providers typically ask prospective policy holders to

answer a variety of questions about their lifestyle, including whether or not

they smoke and how much alcohol they consume. It’s vital that individuals 

answer these questions honestly, as companies can deny payouts to

beneficiaries if they determine policy holders misled them during the

application process.

 

Coverage

 

Coverage needs vary depending on the individual. Life insurance is intended

to provide for loved ones in the aftermath of a policy holder’s death. How

much money will those individuals need to pay their bills? Young adults who

are just starting their families may want more coverage than aging adults who

have already paid off their homes and saved a considerable amount for

retirement. The National Association of Insurance Commissioners

recommends that individuals ask themselves how much of the family income

they provide and if anyone else, such as an aging parent, depends on them

for financial support. Answering these questions can help individuals

determine how much coverage they need.

 

Types of coverage

 

Insurance providers offer various types of life insurance policies. Term life 

policies are among the most popular because they tend to be affordable while

offering substantial coverage. There are different types of term life policies,

but policies tend to run for anywhere from 10 to 30 years and expire around

the time individuals reach retirement age. That’s because many people save

enough for retirement and don’t have the sizable expenses, such as a

mortgage, to account for at this point in their lives. That means loved ones

won’t necessarily need to be provided for in the wake of a policy holder’s death.

 

(Note:) Plumlife offers the client the option at the end of the term to convert

the policy to a whole life or universal plan before age 70.

 

Permanent life insurance policies last until the policy holder’s death so long as

he or she continues to pay the premiums on time. Financial advisors can help

individuals understand the ins and outs of the various types of permanent life

insurance policies, which differ from term life policies because they can serve

as investment vehicles and sources of loans in certain instances.

 

Life insurance is a vital component of asset protection that can offer peace of

mind to policy holders who want to ensure their loved ones are provided for in

the wake of their death.

 

Author: Metrocreative Connection
Source: © 2022 Washington Times Herald, 201 E. Main St. Washington, IN
Retrieved from: www.washtimesherald.com/
FINRA Compliance Reviewed by Red Oak: 2191248

https://fflheartland.advisorprofiles.com/article/544061

 

Contact:

Hayden Childs

Alabama Licensed Agent

(205) 269-1382

 

I am an Independent Insurance Agent

Offering both term and whole life with

Several highly respected companies.

 

I work for you to get you the most

Coverage at the bottom dollar!

 

Looking for term life?

 


 

 

https://www.helloplum.com/agent/childs-806

 

 

Comments

Post a Comment

Popular posts from this blog

022823 The 9 Benefits of Whole Life Insurance...

(1) Provide for Loved Ones…   It’s the basic need everyone thinks about. You have a young family. You are the major breadwinner. Something happens to you. How is Your family supposed to make ends meet? It’s a form of protection. Peace of mind.   (2) Key Man Insurance…   You and your partner own a business. It’s grown. Many employees Depend on you. If something happens to your partner, it’s likely their Spouse or family will inherit their share of the business. Cash would Be a lot more useful to them. Life insurance on both partners can Provide the cash to buy out heirs and keep the business intact.   (3) Emergency Loans…   Hopefully your client lives a long life. The whole life policy accumulates Cash value, eventually growing to the full face value, or beyond. Many Policies allow you to borrow money against the cash value. You would pay interest.   (4) Funding Estate Taxes…   Your client owns a farm. I...
Post a Comment
Read more

090921 Those Dying From Covid-19 Are Least Likely to Own Life Insurance...

Many companies have sharply reduced estimates of their exposure, as measured by payouts per 100,000 U.S. fatalities   As the number of U.S. corona virus deaths surpasses 200,000, public-health experts point to a series of missteps and miscalculations in the country's response. Here’s a look back at how the U.S. became the center of the global pandemic.   Sept. 28, 2020 5:30 am ET    U.S. life insurers are paying out far fewer Covid-19 death claims than initially expected, largely because the virus is disproportionately killing people with little to no insurance. In the past few weeks, many life-insurance companies have sharply reduced estimates of their exposure, as measured by payouts per 100,000 U.S. Covid-19 fatalities. Estimates have come down by an average of 40% to 50%, according to Credit Suisse stock analyst Andrew Kligerman.   Driving the rapid reduction in exposure are two groups… older Americans and minoriti...
Post a Comment
Read more

072321 Why I am a Insurance Agent?

Hello, I’m Hayden Childs I am based in Northwest Alabama I am an Independent Life Insurance Agent … That means I work for YOU to find YOU the Best deal in coverage available. I am thankful to be in an industry that is a  blessing to people. You may be asking your self … Hayden why are you an insurance agent? That one is easy … I am doing this because I want to be a blessing to people. I care about helping people meet their final  expense needs. I am a Christian businessman and I conduct my business in an ethical and professional manner. I have had the blessing of knowing and working with some great insurance agents   I Believe in Life Insurance …   If you have personal coverage you know what I am talking about.   In YOUR time of need YOU don't have to wonder  "where is the money coming from" for YOUR final  expenses. YOU know because YOU made a responsible choice and purchased life insurance and kept the premiums paid. ...
Post a Comment
Read more