What is Life Insurance?
Life insurance is not a fun topic to think about, however it is extremely important, and all too often put off. Life insurance explained in its simplest form is an agreement between you and the life insurance company. When purchasing a life insurance policy, you agree to pay premium, often times on a monthly or annual basis. In return, the life insurance company agrees to pay out a specific amount of money in the event of your death, to a specific person you deem called a beneficiary.
How Much Do I Really Need?
A questions we get very often is “how much life insurance do I need”? The answer depends a great deal on what your objective is. In most all cases, the death benefit is the main reason one takes out a life insurance policy, however other factors such as cash accumulation to supplement retirement for example, may mean a lower face amount to focus more on cash accumulation. For this reason, we always talk in depth with our clients about what their objective is. If death benefit is the only objective, we have a simple formula to help you understand how much life insurance you need.
Think of the word LIFE. The ‘L’ stands for liability, the ‘I’ stands for income, the ‘F’ stands for final expense, and the ‘E’ stands for education. The video above explains how to utilize this simply acronym to gain a better understanding of how much coverage you truly need in order to be properly insured.
Ultimately there are two main categories of life insurance:
Term Life Insurance – Offers coverage for a specific amount of time
Permanent Life Insurance – Intended to over coverage until time of death, so long as premiums are paid
There are several underwriting types when you apply for a life insurance policy:
Fully Underwritten – This is the most in-depth option that includes a medical exam. Often times during the exam the will obtain blood and urine samples.
Non-Medical – This is similar to fully underwritten, without the medical exam and fluid samples.
Simplified Issue – This is often times associated with final expense polices. Utilizes health questions and field underwriting by the agent.
Guaranteed Issue – This is for individuals with major health issues. No health questions are asked. Often times there is a two to three year delay before full death benefit can be paid out.
We Can Help:
Palmetto United offers all of the above mentioned types of insurance products and underwriting options. We represent and offer the top life insurance companies, which allows our clients to benefit both on price point and utilization of reputable carriers. Some of the many carriers we represent are Transamerica Premier Life Insurance Company (formally Monumental Life), Foresters, Prudential, American Amicable Life Insurance Company, AIG, Americo, and Gerber just to name a few. To obtain information, or to receive a life insurance quote, contact Randy Wolfe today.