If you are like are like us, your family and their wellbeing is the most important things in your life. Losing them is something that no one wants to think about, yet it’s important to plan ahead. We get a lot of questions regarding Life Insurance, including inquiries about what Life Insurance does and how much you really need to adequately care for your family.
Here are just a few reasons why you would need Life Insurance:
- To Pay Final Expenses
- To Cover Children’s Expenses (such as college)
- To Replace the Spouse’s Income
- To Pay Off Debts
- To Buy a Business Partner’s Shares
- To Pay Off Estate Taxes
At East & Greenwell, we understand what it means to have families and people that depend on you. Call us to schedule a review. We’ll help you make sure that you and your family have the protection it needs should something happen.
Life Insurance FAQs
One of the most important reasons to purchase life insurance is to ensure your loved ones are provided for financially. Life insurance is also useful in helping your survivors pay bills and debts after your death, as well as for funeral expenses. It may be used for wealth accumulation and distribution as part of an overall financial strategy. If you do not have any dependents, you may still want to buy life insurance as a means to minimize tax consequences for your charitable contributions.
Term life insurance provides protection for only a specified period of time. These time periods are usually 10, 15, 20 or 30 years. There is no cash value associated with term life coverage, which is why its premiums are often lower than for other types of insurance. Some term life policies may offer greater flexibility such as terms for return of premium and the potential to convert to whole life insurance.
Permanent life insurance lasts the entire lifespan of the insured. The policy accrues cash value and the payout is assured at the end of the policy if the policy is kept current. Whole, universal, variable, and single premium life are all types of permanent life insurance.
Universal life insurance provides protection for the entire life of the insured and builds cash value over time while offering flexible premiums and a flexible face amount. This type of insurance may be ideal for retirement planning or any number of long-term goals.
Variable universal life insurance is coverage where the entire value of the policy is regulated as a security. This means that the cash value and the death benefit will fluctuate with the value of the investment, which requires opening an investment account. The risk is higher with this type of policy.
Generally the amount of protection you need is a combination of what it would cost to help your surviving family members and dependents meet their current needs (like taxes, food, clothing, utilities, mortgage payments, etc.) plus future obligations (like college and retirement funding) – minus the resources that your surviving family members could draw upon to meet those obligations (spouse’s income, savings and investments, other income producing assets, and any life insurance you might already own).
You may also want insurance for wealth accumulation or distribution purposes during your lifetime.
This depends on your situation, budget, etc. We suggest reviewing all of the options before making a decision.
Even if you already have a life insurance policy, it’s a good idea to review it periodically to make sure it still meets your overall needs. There are times in life you need to take a look at your financial situation, such as if you:
- Were recently married or divorced
- Had or adopted a child (or became a grandparent)
- Have children or grandchildren who are about to enter college
- Provide care or financial help to a child or elderly parent
- Received an inheritance
- Retired or your spouse has retired
- Started a business
- Changed/lost your job or salary
Yes. This will insure future insurability and can be a good savings vehicle as well.
Buy it early as the price goes up as you age. Health is also a factor as well so staying healthy will help you save money.
Absolutely! Also, the benefit is tax free!
Typically you do a medical exam in order to get the best rate. You can buy life insurance without the medical but you will pay more.
You do not need to meet with an agent but it never hurts to feel comfortable with the people you are dealing with. It also helps to meet in person for the initial needs analysis, etc. Everything can be done over the phone if you prefer.
Typically it is deducted from an account monthly but it can also be paid quarterly, semi annually, or even annually.