In the journey of life, uncertainties are the only certainty. Life insurance can provide a safety net for those who depend on you in the event of catastrophe. Just like a house needs a strong foundation, your family needs the security of financial support, should the unexpected happen.
Life insurance can also be used as an efficient solution for corporate financial planning, or as part of a robust estate plan, often leaving more for your family and less to tax.
Key considerations for your life insurance policy:
- Coverage Amount: Recommended to be seven to ten years’ worth of your annual salary, but varies based on personal debts, family needs, and future goals like education funding.
- Debt Protection: Coverage that ensures your debts, including mortgages, don’t become a burden to your family.
- Funeral Costs: Provides for funeral expenses, alleviating financial stress during a time of grief.
- Financial Security: Ensures your family’s lifestyle and daily needs are met.
- Support for Dependents: Offers support for aging parents or dependent children.
- Legacy and Charitable Giving: Option to leave a portion of the benefit to a cause close to your heart.
FAQ
How do I determine the right amount of life insurance coverage?
The right amount of coverage depends on various factors, including your current income, the number of dependents, existing debts, and future financial goals like your children’s education. By working with us, we can help assess your specific needs and recommend the appropriate solutions and coverage.
Can life insurance policies serve purposes beyond death benefits?
Yes, certain types of life insurance policies can offer benefits beyond just the death benefit. For example, whole life and universal life insurance can accumulate cash value (equity) that you can borrow against or use as collateral for loans. Some policies also offer riders, such as critical illness coverage, which provides financial support in case you are diagnosed with a severe illness.
How does age and health affect life insurance rates?
Your age and health are two of the most significant factors that influence life insurance rates. Generally, the younger and healthier you are, the lower your premiums will be. This is because insurers view younger individuals as lower risk for insurance claims. Pre-existing health conditions, smoking status, and family medical history can also impact your rates. Our team of experts can help you navigate age, health and other factors when discussing your insurance plan.
What are the payment options for my premium?
Typically you have the option of monthly, three pay, or annual premium payments. Monthly is typically easier to budget but there can be some premium savings benefits to annual payments.
Can I change my life insurance policy later on?
Yes, it’s possible to adjust your life insurance policy as your life circumstances change. For instance, you might want to increase your coverage after having children or buying a home. With some policies, particularly whole and universal life insurance, you can adjust your premiums and death benefits over time. However, changes can be subject to underwriting approval and may affect your premiums. It’s important to review your policy regularly and discuss any potential changes with your insurance broker.
