Life insurance is something that many people think is very complicated and so it is usually something they avoid talking about.
Some people also think it is unaffordable for the average person and family without even checking to see what a plan actually costs. Some people don’t understand the value of a plan and what it can do for their family. In many cases, it is very affordable and most certainly better than being unprepared when a loved passes away unexpectedly.
The financial burden placed on you suddenly could have been eliminated or at least minimized by budgeting a small amount each month and purchasing a life insurance plan. Your qualified insurance professional has the specialized training to help you find a plan that best fits your family’s individual needs and budget. By working with you and finding out about the size of your family, ages, health conditions, and budget needs your insurance professional can help you design a plan that will place your family in a better situation and not break the budget.
Burial and other end-of-life expenses can be very expensive especially when they are not planned for. Most if not all funeral homes do not take credit or do payment plans, but they do take an insurance policy as payment or cash for services. As harsh as it may sound there are people that have to borrow from banks, other family member and friends, churches, charities and some even have to do fundraisers to raise the money to bury their loved one. The funeral expenses are only the beginning but are not the only consideration of the other financial burdens placed on the family when there is a death and there is not an insurance plan in place.
Every family member is important in each family structure but when the main breadwinner is the one that passes away it goes beyond the immediate burial expenses but includes the loss of his or her income. With the sudden funeral expenses and the loss of income the financial consequences could have a devastating effect on the family. By planning ahead with a life insurance plan you can minimize the financial impact that will be felt. Life insurance can pay for final expenses, medical bills, mortgages, outstanding debts, loss of income, and future expenses such as college for your children and so on. Life insurance can provide peace of mind and a better and brighter future for those you love.
There are different types of life insurance plans and options to choose from and this is where your life insurance professional can help you with his expertise and training. He can help you find the best plans based on the stage of life you are in such as beginning a family, growing a family, close to retirement, after retirement and more. The size of your family as well as your health and the health of your family will be a consideration in the type of plan or plans you need. Your current budget and the amount of income you would need to replace is also a factor in the type of plan you want to look at.
Your professional insurance agent will begin by asking you some questions and then help to design a plan to best meet your needs and stay within your current budget. The main goal of life insurance is to help pay for medical bills and funeral expenses. But you also need to consider having enough coverage to provide financial security for your family especially if it is a growing family.
To do that you have to ask yourself some questions about your current finances and for those finances that will be coming up in the future. You would want a face amount or coverage amount that not only pays off all debt and current expenses but that also would include expenses in the future to provide a secure future for your family. Your agent may ask you questions about the income you want to replace, if your spouse works, if your children are in daycare, sports, dance or music classes, do they plan on going to college, if you have a mortgage, auto payments, and other debts. There are many things to consider and look ahead to the future not just for yourself but in the event that you were no longer there to provide for your family.
There are considerations of how much coverage to get in place for a child but not as much as for the primary breadwinner of a growing family. Even with the death of a child, there are unexpected expenses that you would incur that a life insurance policy can prevent help to prevent a financial burden and even a change in lifestyle if the burden of expenses are excessive. Some of these excessive expenses could be medical bills in addition to the funeral expenses. Other considerations of purchasing a plan on a child besides protection for you from a financial burden of an unexpected and untimely death is that you are: purchasing a plan when they are young so the premium is lower than it will ever be in their life. You are getting a plan in place while they are in excellent health and before any health risks come into play. Purchasing a child policy usually builds cash value through the years so this can be a great option to provide an educational fund or emergency fund for your child in the future.
There could be other family members not in your immediate family that if they passed away the burden or financial responsibility of paying for their funeral would fall to you. This could be a parent, sibling, or aunt or uncle. If this is something you think would most likely happen it is wise to consider a policy on them to prevent the financial burden falling on you without a life insurance policy in place.
Now we will look at some other tips to help you when shopping for your family insurance. It is wise to purchase your insurance when you are young instead of waiting until you are older. Life insurance rates are based on age and health so your rates will be lower when you are younger. Also as we age many people begin to get health problems which can increase their insurance rates and depend on the severity of the health problem can even be a cause for the insurance company to decline you coverage.
If you are looking for a large policy to not only cover the funeral expenses but to leave money to provide for your family’s financial future you usually will get a less expensive rate if you take a medical exam than if you just get the standard plan with no medical exam.
Another way to save money and to get the best coverage for your family is to purchase a combination of a whole life plan and a larger term plan. This is beneficial because you have a large term life plan while you are growing your family and have debts and large expenses such as a mortgage. If you do pass away at a young age the family can use the money from the whole life plan and have the larger term plan for the debts, mortgage, and their financial security. You will want to purchase a whole life permanent plan in addition to the term. By getting it while you are young it will be in place no matter how old you are as long as you pay the premium. The whole life plan will be there for your retirement years long after the term plan has expired. The whole life plan will have a low rate because you purchased it while you were younger and in good health and is remains there to pay for final expenses and your family will not have that burden placed on them.
So now you know what you should be looking for a life insurance plan or plans that will not only cover you the breadwinner but your spouse, children, and even other family members you could be responsible for. While you are looking at the different plans available it is best to consult with a licensed professional life insurance agent who can use his expertise to help you find the plan that offers the best coverage for the best rates that will fit your budget. An independent agent who works with different companies is the best type of agent to work with because this will minimize confusion and allows you to speak with one person that knows the plans that are available and offered by different insurance companies. This also puts you at an advantage because an agent that works for only one insurance company will push their insurance products even if it is not always in your best interest. An independent agent can help you more objectively because he works with you to get you the best possible plans available and designed especially for your individual needs.
The type of life insurance that is best suited to you and your family can be one of the major decisions of life. You have to make sure your family will be well taken care of in case something happens to you but it’s also important to be economical as you are also making sure of taking good care of your family at the current moment. This is the reason why an online life insurance agent capable of helping you locate the right insurance carrier and insurance policy can be of great significance. You can tell when an insurance company is giving you a valuable service when it can quickly and easily calculate your insurance needs, give you a quote and help determine your health class.
Learning the Pros and Cons of Life Insurance Policies
Among the Spectrum Groups of term life insurance is its offer of an effective means of getting the most out of your insurance coverage for the lowest costs for up to thirty years. The need for insurance coverage is normally the most around the time children are growing up and heading to college, when purchasing an insurance policy that covers that duration can be a big relief. Additionally the insurance policy also covers financial needs like mortgages and family income needs for children which are not permanent.
Term life insurance has its share of disSpectrum Groups too. Term life insurance lacks the whole life insurance offer of cash value if you were to surrender the insurance policy prior to its maturity or your death. Therefore, while whole life insurance policies increase in value over time with cash value or annuity offer, term life insurance policies do not. But remember that due to their higher value over time, whole life policies have higher insurance premiums.
Determining Your Life Insurance Needs
Purchasing a life insurance policy is a major decision that needs you to make sure that you choose the insurance policy that is most suitable for you and your family’s needs. This is the reason we at Life Insurance have made it our goal to help you get a clear idea of what your insurance coverage needs would be and which is the insurance carrier that offers the best policy for your budget. It’s pointless to spend endless hours in consulting multiple insurance carriers for the best quote when you can get all of it done through an online insurance agent.
Among the key factors influencing your insurance premium rate your health class. Strange as it may seem, health class is rated differently at different insurance companies with one rating you standard while another with the same information might rate you preferred. With a good online insurance agent you get help in identifying the insurance carrier with the highest health class rating for you in order to get the lowest insurance premiums possible.
Life Insurance Applications Made Easy…
The leading life insurance agentages can make the application process very simple and convenient for you. Simply fill out basic information online, get your quote and fill out the application. The application can even be completed over the phone or in the convenience of your home or office. Your insurance agent should be made to only consider the top rated insurance carriers. The best insurance companies prefer insurance carriers with an A rating or higher from AM Best, the top independent evaluator of insurance companies in the country.
The knowledge of your family being taken care of in case of any mishap befalling you, can give great peace of mind. It is you alone who can decide the best life insurance coverage for you and your family. But it’s comforting to know that there are people who can simplify the decision process for your convenience.
Spectrum Insurance Group is made up of life insurance agents who are licensed in all 50 states and the District of Columbia. Spectrum Insurance Group has helped 1000’s of consumers purchase life insurance online & over the phone.
All content on this site has been written by life insurance experts & licensed life insurance agents.