“Waiver of Premium” and Other Benefits Your Life Insurance Policy May Include
Although you probably purchased a life insurance policy for the protection it provides in the event of a death, a policy may contain some other surprising benefits.
It May Build Cash Value
Many whole life or permanent insurance policies will build in cash value over time. This cash value can be tapped into at some future time through a low-cost policy loan. It also may be “cashed in” to redeem it for its accumulated cash value. Ask your agent for a policy status report on your life insurance to determine its present cash value, if any.
It May Provide for Additional Accidental Death Benefits
Frequently, life insurance policies will include accidental death benefits that multiply the coverage amount. For example, if your policy has a $10,000 face value, the policy could potential pay $20,000 or more should the death occur by a covered accident. Our independent insurance agents can quickly determine if your policy has such a benefit.
It May Include Loss of Limb or Eyesight Protection
Life insurance policies have also been known to include “Loss of Limb” coverage which also may provide a cash payment in the event of loss of eyesight. This benefit is usually a set percentage of the face value. For example, a 25% payment on a $10,000 policy for a loss of limb would pay the policyholder $2,500 should they lose an arm or leg.
It May Contain a “Waiver of Premium” Benefit
A “Waiver of Premium” benefit pays the costs of the policy while the policyholder recovers from a debilitating accident, injury or illness. It could pay premiums for a few months or in the case of a permanent disability, cover the premiums for the life of the insured. Again, our independent agents can help quickly identify if a policy has such coverage.
In the case of life insurance, you may actually get more than what you think you are paying for. For a life insurance review or to get a quote on a new life insurance policy, contact us. Let us help set you up with the protection you need along with the added benefits you deserve.
Baby Shoes or Life Insurance? What’s a Better Baby Gift?
There’s a cute insurance commercial on television you may have seen. In it, a country singer and retired football quarterback come across a baby shower where ”mom” is opening a gift box. The quarterback says “I hope it’s a life insurance policy.” and the singer responds “What???” The quarterback goes on to explain that a life insurance policy is a practical gift. Turns out the gift is baby shoes, causing the quarterback/spokesman to exclaim “Doesn’t make sense. Babies can’t even walk.”
It may bring a chuckle, but there’s a lot of truth to that clever ad.
Whether it is baby shoes, boxes of diapers or hundreds of toys, we tend to gift babies and small children with items of temporary value. Some items may never be used, played with or worn. Yet, many children grow up without the benefit of a life insurance policy.
What “benefits” you may ask? Well, a life insurance policy not only insures the life of a child but ensures the child will have access to life insurance no matter what health issues may lie ahead in the lives. The appropriate whole life insurance policy can build value through the years. This can be a financial resource the child can borrow against to buy a car or help pay for college someday. It may even be “cashed in” at some future point, like taking money out of a savings account. The best part is that when life insurance is purchased on a young person, it is very affordable. If the child should decide to continue maintaining the policy as an adult, it could become a significant part of their retirement plan.
Whether you are a parent, grandparent, aunt or uncle, if there is a baby or small child in the family, consider gifting a life insurance policy. Maintaining those modest premiums annually can be a lasting gift that will always be remembered. It may also be a lot more practical than another toy or outfit they will outgrow in a few months.
Our independent agents know companies who offer terrific value when it comes to life insurance for children. Contact us for a quote today. It may be a gift that is a little “out of the box” but it is a lasting one with real value.
It’s Time to Start Adulting: Getting Life Insurance When You Graduate
If you are a college senior, you are approaching an exciting date. All the work you have been putting into studies is about to pay off in getting your diploma. Congratulations. You are about to become a college graduate. Let the adulting begin!
Oh, you’ve certainly had some adult experiences along the way. You probably already have acquired a credit card or four. You may have a car loan or the responsibilities involved in leasing a home or apartment. You likely have piled up a fair amount of student loans along the way as well. It is time to take another step forward. That is the acquisition of life insurance.
Why would a single, 20-something who is healthy and without children need life insurance? It is because you are young and healthy and life insurance will never be cheaper. It is because you have obligations and there will be expenses in the event of your death. But life insurance can also serve you well in the future as it builds cash value that you may be able to use in an emergency or for an opportunity.
Life insurance for a healthy 22-year old is extremely affordable. It can help make sure your credit card and student loan obligations are taken care of and not an obligation for those left behind. It will cover final expenses and any medical bills that may have accrued.
Contact one of our independent insurance agents to discuss why life insurance should become part of your personal financial plan. They can show you life insurance plans that build equity, serving as a forced savings account that you can access later in life. Finally, securing whole life insurance when you are young and healthy assures you will have protection even should your health deteriorate.
You will be glad you have an established life insurance program as you enter other phases in your life like potential marriage, having children and owning property. It is an important stage in adulting.
Life insurance may seem contrary for someone just getting started in their careers. A better or newer car, nicer smartphone, or a wider-screen TV may seem more valuable at this stage in your life. But adulting is about making better decisions that will serve you now and in the long term. An affordable life insurance program is one way to accomplish this. We would be happy to show you how to get started.
What’s the Difference Between Term and Whole Life Insurance?
Many of our decisions in life start by choosing one path or another. We can choose to rent the space we live in or buy a home. We can book a flight or drive to our destination. When it comes to life insurance, your path starts by understanding the basic differences between term life insurance and whole life insurance.
Term insurance covers the insured’s life over the course of a specific period. The term may be five years, 20 years, 30 years or anywhere in between. You may purchase a 30-year term life insurance policy to help ensure a mortgage is paid off in the event of a death. A young breadwinner may decide to take out a large amount of term life insurance to protect a young family, ensuring college will be paid for and the family’s lifestyle can continue. One of the biggest benefits of term insurance is that it is relatively inexpensive to acquire, especially at younger ages. The downside is that term insurance will expire at the end of the term and coverage will cease. There is usually no cash value build-up with a term life insurance policy.
Whole life insurance, or what is sometimes referred to as permanent insurance, will stay in force for as long as premiums are made in a timely manner. While it can be more expensive to purchase than term insurance, it has the added benefit of building up cash value over time. This cash value can be accessed through a policy loan, usually at a very attractive interest rate. The policy may also be “cashed-in” at some future date. The other benefit is that even if the insured were to become sick, even terminally, the policy can’t be canceled. Some families who have a challenge saving money will choose whole life insurance as a form of forced savings.
Generally speaking, term insurance is better for those with large financial responsibilities, who need to acquire a significant amount of coverage at an affordable price. This can include those with large incomes or large debts. It is also a way young families can cover mortgage, car, credit card and student loan payments in the event of the death of an insured, while also providing living expenses for those left behind. Whole life is often chosen for those who require less coverage and may also want to build “equity” in a policy.
So what’s right for you? Let’s discuss where you are in life and where you want to go. We can discuss any present life insurance you may have and what can be done to enhance it. Get the life insurance coverage best for your situation. Contact us today.
Why Life Insurance for a Child (or Grandchild) Is a Good Idea
If there has recently been a baby or grandchild added to your family it can be a reminder of just how fast time passes. This is particularly true for grandparents who have seen their own children grow far too quickly. Days soon become months, months turn into years and, well, it goes on and on.
So why should this inspire you to buy life insurance for a child or grandchild? It is because it is a time to remind ourselves the future will be here before you know it. It is time to consider how life insurance can play an important part in the future of that child.
Let’s start with the fact that it will never be cheaper to buy life insurance than when a child is a baby. In fact, depending on the type of insurance that is purchased, the premium can be locked in at the child’s current age for the rest of their life.
Buying life insurance on a healthy baby also insures that no matter what health issues may lie ahead for that child, life insurance coverage is guaranteed. As long as premiums are maintained, coverage of a whole life policy will remain intact.
Perhaps one of the best reasons to purchase life insurance on a child is that your independent insurance agent can help you choose a policy that will grow in value as the years pass. A whole life or permanent insurance policy can build value over time. Depending on the amount and type of policy, this can be significant. Most importantly, a life insurance policy purchased on a young healthy baby guarantees coverage for them in the event they become uninsurable as they get older. It can help them purchase their first car, help pay for college or even contribute to wedding expenses. If a policy is maintained through their life, it can become a foundational piece of their retirement plan. It can all start with a call to your independent insurance agent.
Toys will be bought, used, broken or sold. Clothes will be outgrown, passed along or given away. Money can go into and out of a savings account. A life insurance policy that builds equity, however, will stand the test of time, time that is unstoppable.
If you are a recent parent or grandparent, we encourage you to contact us to discuss the options available for your child or grandchild. A decision today can make a remarkable difference in a future that will be here all too soon.
What Would You Pay for a Genie in a Bottle?
Most are familiar with the story of the Genie in a bottle. The person who finds the bottle and releases the Genie is afforded three wishes. Of course, the story is a fairy tale and isn’t really true. But what if there were some elements to the story that were possible?
What, in fact, you could buy a Genie in a bottle? How much would it be worth to you?
There are some rules with this Genie in a bottle that you need to be aware of, however. First, it will only work if it is purchased out of generosity and love. In other words, this Genie will only work for others.
So, knowing that you could buy a Genie in a bottle, but the wishes would not necessarily be for you but your spouse or loved ones, would you still be interested? Oh, there’s one more thing. To release the Genie from the bottle you can no longer be alive.
This Genie in a bottle we are talking about is, of course, life insurance. When you buy life insurance you are doing it out of love for your spouse or children. Oh, you will get peace of mind and a sense of satisfaction knowing that your family will be financially provided for, but it is really for them. They can use the proceeds to maintain their lifestyle, pay off a mortgage, pay for college or a variety of other “wishes”. Of course, for life insurance to release its benefit, the death of the insured must take place.
This all means that you can, to some degree, buy a Genie in a bottle for your family. One that will help them in your absence. You can even pay for it through monthly payments you can afford. A few more things about this “Genie”. You can usually only buy it when you are healthy and the younger you are when you purchase it, the cheaper it will be.
The added benefit of this tale is that you can write your own story. You can help decide what is important for your family to have in the event of your death, and the wishes are not limited to three. You may not be interested in “life insurance” but you may want to provide that Genie in a bottle for your family. Contact us to discuss how life insurance can play an important role in your financial future.
“I’m Too Young and Healthy for Life Insurance.”
A quick quiz:
If you’ve ever said to yourself “I’m too young and healthy for life insurance” you should:
a.) Be grateful
b.) Knock on wood
c.) Get life insurance
d.) All of the above
Of course, you should be grateful if you are young and healthy. Count yourself as among the very fortunate. You should also knock on wood, because, well, it can’t hurt. Getting life insurance when you are young and healthy is the BEST time because it is very affordable and you are more likely to qualify. The answer, therefore, is d.) All of the above!
When you are young and healthy you may think you are indestructible and that youth will last forever, but that is an illusion. Forward-thinking people plan for the inevitable, like saving for college, retirement, and yes, getting life insurance. But getting life insurance while you’re young and healthy is also a practical decision.
Life insurance can take care of any debts, including medical-related ones and student loans in case of an untimely death. It can pay for final expenses and even be used to leave a legacy. In the case of whole life or permanent insurance, life insurance can build equity. As it builds value, funds can be accessed for a variety of purposes including emergencies and opportunities. Once you have a permanent life insurance policy and pay premiums in a timely fashion, it remains in effect, even if your health should deteriorate. In fact, many policies have a waiver of premium that will waive your premiums should you become disabled while the policy is in force.
Perhaps most importantly, because life insurance premiums are based significantly on age, the younger you are, the less expensive your life insurance policy will likely be. Over the course of time, these savings will be significant. “I’m too young and healthy for life insurance?” It is actually a terrific time to consider it.
Contact us and let’s discuss your situation in life and your financial obligations and goals. Let us help you find affordable coverage that will provide significant protection, and may even increase in value. See why life insurance can play a significant role in your financial future.
You Had Life Insurance, But Now No One Can Find It
It’s theoretically possible that you could live forever. But you probably won’t. Life insurance is what protects your family from the consequences of your untimely (or timely) demise, but it’s not as simple as just having an insurance policy. Here’s what you need to know.
You Could Have More Life Insurance Than You Think
Life insurance is very affordable. In fact, so affordable that it practically comes in cereal boxes. You may have more insurance than you think: through your employer, credit accounts, or bank. Usually these life insurance policies are fairly small, but they still add up. That being said, if you don’t know about your insurance coverage, your family certainly doesn’t.
The Problem of Life Insurance Policies
Your life insurance company doesn’t actually know when you’ve died. They need to be contacted by one of your next of kin, with a death certificate. And that can be difficult if your next of kin isn’t aware that you even have a life insurance policy. So what can you do?
You need to make sure that your family has all the relevant copies of your insurance policies. It’s not a topic that a lot of people enjoy, so it’s a topic that we often avoid. But something as simple as a folder with your life insurance policies in it can help.
Have all of your documents nestled safely on your computer? Better remember that your family members all know and remember your passwords.
Life Insurance Comes in Many Flavors
Keep in mind that there are multiple types of life insurance. Term life insurance policies expire, so if you forget about them, stop paying them, or fail to renew them, you no longer have life insurance. Whole life insurance policies are different: they last your entire lifetime because they’re like investment accounts. And then there are annuities, which is a different beast altogether.
An independent insurance agent can work with you to make sure you have the life insurance you need, and that your family has all the documents they’ll need to find your insurance if you pass.
Life insurance is something that you don’t want to put off. When it’s too late, it’s really too late. Contact an independent insurance agent today to learn more about your coverage options.
Creating a Legacy Through Life Insurance
There are times when we may feel a bit insignificant and that we may not be able to make the impact we once thought we could. Many people are finding that peace of mind and sense of satisfaction by purchasing life insurance and providing funding for a non-profit or other cause they may have supported through their lives. Others may leave a significant amount via life insurance proceeds to children, grandchildren, or even great-grandchildren to establish their legacy.
The point is that if you would like to leave something behind, an amount of money that a non-profit or relatives can benefit from, life insurance is a perfect way to do it.
First of all, life insurance proceeds are non-taxable, although you should consult an accountant. Secondly, the value you provide the people or causes you leave behind can be multiplied time and time again through a life insurance policy.
For young grandparents, a few dollars a month can provide thousands of dollars in proceeds for grandchildren who may ultimately use the funds for an education or to get a leg up on life. A modest investment in a life insurance policy can be used to leave an impact on a non-profit normally reserved for those of only immense wealth. Access to life insurance can elevate your level of giving tremendously.
Perhaps, however, the best legacy is to leave proceeds of a life insurance policy for the one closest to you. While a loved one may be mourning your loss, they can take comfort in knowing they will be provided for years to come. They can take solace in the fact that their home will be paid for, and they will not have to compromise their lifestyle. They can move forward without debt, financial worries, or stress. This is a magnificent legacy that you can achieve by simply getting an adequate amount of life insurance.
No, not all life insurance is equal. There is term insurance designed to help protect your family through the most vulnerable years of your life. There is whole life or permanent life insurance that will be there for you as long as premiums are paid. There are policies that offer exceptional protection while also having a savings’ element that proves valuable for emergencies or opportunities in the future.
We understand life insurance may not be the most uplifting or exciting subject to discuss. If you want to create long term peace of mind and satisfaction, however, consider the legacy you can leave through its purchase. Contact us. We would appreciate the opportunity to help you achieve your lasting goals through life insurance.
Excuses for Not Getting Life Insurance
Excuses for Not Getting Life Insurance
While life insurance should be a part of anyone’s financial plan, we continue to hear some of the same excuses as to why some believe they don’t need it. Do any of these sound familiar?
“I’m young. I’m healthy. I don’t need life insurance.”
Actually, when you are young and healthy is the best time to get life insurance. Life insurance rates are largely based on age and physical health of the insured. Being young and healthy is a good reason to get life insurance.
“I’m young and single. I don’t need life insurance.”
Being young and single doesn’t mean you are debt-free or won’t have final expenses. Even an inexpensive funeral can cost into the thousands of dollars, and believe it or not, dying doesn’t resolve your credit card or student loan debt. Now if you are young, single, have absolutely no debt and have pre-paid your final expenses, you may have a more valid reason not to purchase it. But even then, having life insurance will assure you have coverage should you not qualify later when you do get married or have a family.
“I’m going to be dead anyway!” (or the variation; “I’m not going to be here, what do I care?”)
This always makes our agents cringe just a bit. Unless you are a truly rare breed, odds are you will be leaving people who care about you behind. These are people who will want to pay their respects, whether you care or not. Odds are you may have credit card or student loan debt or a mortgage or car loan. You may not be here but that train wreck of expenses, potentially including costly medical and funeral expenses may be left behind. Yes, we know the expression is “humorous” on some level but it is truly not practical or very caring. You don’t need to leave loved ones with a huge windfall upon your death, but you certainly don’t want to put them on the spot either.
“Life insurance is too expensive.”
Life insurance can be purchased in two broad forms, term insurance or whole life insurance. Term insurance covers the life of an insured for a specific period and actually can be quite inexpensive, especially when purchased when you are young and healthy.
Life insurance can give you peace of mind, protect your family, ensure college educations, pay for final expenses, resolve remaining debt and can even build cash value over time. To see how it can serve you, contact us to discuss your situation, your goals, and affordable options.