How Do I Know If I Need Life Insurance?
How Do I Know How Much Coverage I Need?
What’s The Difference Between Term And Permanent Life Insurance Coverage?
Can I Use Life Insurance While I’m Living?
Can I Borrow Money Against My Life Insurance Policy?
Can The Same Person Have More Than One Life Insurance Policy?
What Should I Consider In Naming My Beneficiaries?
Is A Physical Exam Always Required To Obtain Life Insurance?
How Do I Determine If I Need Life Insurance?
If the unexpected happened and you died tomorrow, would your family be able to pay for your funeral and burial costs, unsettled medical bills, and any other remaining obligations? How would they pay for their own continuing expenses such as groceries, gas, utilities, and mortgage?
Life insurance is the answer. A safe, simple way to promise that the people who counted on you now will be looked after once you’re gone. Beneficiaries collect a tax-free cash imbursement that certifies their regular way of living so their customs do not suffer. We encourage you, don’t make a heartbreaking condition more tragic by failing to plan for the unthinkable.
If you are the chief breadwinner in your household, life insurance is not a choice. It’s a necessity.
Contact your GPS Insurance Agency, LLC agent to discuss your life insurance options today.
How Do I Know How Much Coverage I Need?
You won’t find a “one size fits all” policy that is perfect for every person, because no two individuals have precisely the identical wishes. An senior widower who only desires to pay for his own funeral costs would need a very diverse policy from a 45-year-old who is the main breadwinner in a family with 3 children.
While authorities argue on the precise plan for income replacement, most guess that, at a least, an individual wants coverage equivalent to six times their annual salary. Eventually, the only “erroneous” response is no coverage at all.
Contact your GPS Insurance Agency, LLC agent today, and we can assist you with balancing your family’s future needs with your current financial capabilities.
Is There a Difference Between Term And Permanent Life Insurance Coverage?
Term Life insurance is the more inexpensive type of life insurance, because it simply provides coverage for a restricted period of time. Policies vary, though, they may range from five years up to thirty years. If the policyholder dies within the time period detailed in his or her policy, the insurer is indebted to pay the benefits in full.
The hazard with buying term life insurance is that the policy holder may “outlive” the policy. When this occurs, the policy expiress, and the insured is given the option to restart. However, the new premiums will more than likely be higher, because you are older. Even so, term life insurance is an smart option for a lot of people, it permits them to obtain coverage at a lower cost and when it is most needed.
Permanent life insurance, on the flip side, can offer lifetime security as long as you remain up to date on your premiums. The peace of mind and security that it offers can benefit people of all ages. Those of younger ages about to start their families will benefit by securing a low rate that continues with them and those in retirement ages can rest assured that their family will be provided for when they have passed on.
In many circumstances, a mixture of both term life insurance and permanent coverage is desirable. Contact your GPS Insurance Agency, LLC agent today and let us help you determine which type is best for you.
Can I Use Life Insurance While I’m Living?
While the goal for obtaining life insurance is to afford financial security for your loved ones after your passing, a lot of policies deal with benefits that can benefit the living.
Accelerated Death Benefit
Terminally ill patients can waive their death benefit in exchange for a imbursement equivalent to the life insurance policy’s face value.
Portability
Benefit from group rates and the opportuneness of direct billing by transfering your life insurance plan with you when you retire or switch careers.
Waiver Of Premium
This feature will allow you to keep your coverage even if you become gravely ill or disabled and are unable to continue to pay your premiums.
Cash Accumulation
Some policies agree to let you to increase the amount of your death benefit when you pay an excess on your consistent premiums. Similarly, cash accumulation can also be used to increase the loan amount obtainable to policy holders while they are still alive.
Am I Able to Borrow Money Against My Life Insurance Policy?
The ability to borrow money against a policy is one of the main difference between term life and permanent life insurance. Permanent insurance consents to the policy holder borrowing against the cash value accumulated in the policy. Policy holders are obligated to repay this loan with interest, and any unresolved balances payable at the time of death will be subtracted from the death benefit.
Term life insurance policies, on the contrary, do not have a loan option available, because they do not amass cash value. It is for this reason these types of policies are often called “Death Benefit Only” policies.
Can The Same Person Have More Than One Life Insurance Policy?
Presently, there are no laws limiting the number of life insurance policies one person can have. Individuals are permitted to obtain policies from as many different firms as they want. Often, a person will buy an individual life insurance policy to complement the one they receive through their company. No policy voids policy, and all effective policies are paid simultaneously at the time of death.
What Should I Consider In Naming My Beneficiaries?
Persons you choose as your beneficiaries is one of the most significant decisions a policy holder makes. You will have the choice to elect one primary beneficiary or multiple ones. If multiple beneficiaries are chosen, you will need to agree how the death benefit is distributed between them. Beneficiaries are not required to be real people. Legal articles such as a foundations, charities, or trusts are also qualified.
As a protective measure, you will also need to elect “contingent” or secondary beneficiaries in the event that you survive your primary beneficiaries. It would be wise to take the time to appraise your beneficiaries once a year as they can be altered throughout the life of the policy for any cause.
If you have additional questions regarding the procedure of choosing your beneficiaries, please contact your agent, and they will be pleased to assist you.
Will I Need a Physical Exam in Order to Obtain Life Insurance?
Not every life insurance policy necessitates a physical examination. But, policies that recompense a high death benefit frequently do. This physical is normally completed in your home by a paramedic or licensed health care employee. Most exams involve of a height and weight check, blood and urine samples, and an EKG. You will also want to be equipped to answer questions concerning to your medical past. In some cases, supplementary documents such as a credit history and or perhaps your driving record is mandatory.