Life is fragile; you never know what tomorrow may hold. If you do not have a life insurance policy, you could be risking the financial security of the people you love and who depend on you for their current and future financial stability. With the right policy, you can instantly provide your loved ones with the financial support they need to take care of final expenses, pay monthly bills, and eliminate financial obstacles that could otherwise cause difficulty for years to come.
When Should You Purchase Coverage?
When it comes to life insurance premiums, the general rule of thumb is that young and healthy individuals tend to qualify for the lowest rates. If affordability is important to you, do not delay getting the coverage you need. After all, no one is getting younger, and health can change in the blink of an eye. Not to mention, an unexpected loss is never out of the question. Though death is something no one wants to think of, it is something everyone should prepare for – particularly if you have financial dependents. Remember, if your family suffers a sudden, unexpected loss, it will be too late to purchase the coverage they need.
Uses for Life Insurance Benefits
Life insurance should be personalized to fit your family’s unique needs. Its benefits can be used how you see fit, whether to take care of your beneficiaries or even to protect your family’s financial interest in a business. Here are just a few examples of the ways life insurance can benefit your family today and in the future:
- Wealth accumulation
- Fund an inheritance
- Contribute to charity
- Save for retirement
- Replace lost income
- Pay off debts and medical bills
- Pay for a child’s education, wedding, or other expenses
- Pay for household maintenance services
- Pay for dependent care
- Pay for funeral, burial, or cremation
Types of Life Insurance Coverage
Life insurance policies generally fall into one of two categories: term life coverage and permanent life coverage. You should understand the differences between the coverage types before deciding if one (or both) is right for you during this particular stage of life.
Term Life Insurance
The first coverage type is term life insurance, which pays death benefits only. This type of coverage does not accumulate cash value, but it can provide a high benefit at a very affordable rate. Many people choose term life insurance during their working years when they would need hundreds of thousands or perhaps even a million dollars or more to pay off debts, provide continuing income support, and save for the retirement and college education of a spouse and children.
Term life insurance expires at a specified date – usually between 10 and 30 years from the date of purchase. That may be enough to cover you until the mortgage is paid, you retire, or the children become financially independent. At that point, you may no longer need income replacement, but there will be linger expenses to cover. That is why many people also purchase permanent life insurance that will provide continued benefits long after term coverage expires.
Permanent Life Insurance
Permanent life insurance is coverage that never expires. There are different types of coverage that fall under this umbrella, including whole life insurance and universal life insurance. With whole life insurance, the premiums tend to be a little higher than term life premiums, but they remain level for life. In other words, you will not pay any more for your coverage at age 100 than you did when you purchased the policy at age 30, despite changes in health and mortality risk.
Universal life is more flexible, blending the benefits of term and whole life. On the one hand, the coverage never expires so long as premiums are paid up. On the other hand, it is possible to accumulate and grow the cash value of the policy, allowing for favorable adjustments to premiums over time.
How Much Life Insurance Do You Need?
If you are not sure how much life insurance to purchase or what type of policy you may need, Frank Isadore and our team are happy to help. We understand that coverage needs are different for everyone. The last thing we want is to provide a policy that leaves you and your family vulnerable to financial burdens. We use a sophisticated formula to calculate your actual coverage needs based on various factors, such as:
- Age
- Debt
- Income
- Household expenses
- Household responsibilities
- Number and age of dependents
- Future financial goals
- And more
Private Life Insurance vs. Group Coverage
Depending on your employment and the organizations you are affiliated with, you may have the option of also purchasing group coverage. Though additional coverage is never a bad thing, group coverage should not be a substitute for private life insurance in most cases. With group coverage, you have little control over benefits, policy riders, or the terms of the policy. Not to mention, you may lose coverage if your employment is terminated, forcing you to find new coverage at a stage of life when your age and health could affect your eligibility.
Instead, choose private life insurance available from Frank Isadore and the team at Couri Insurance. We will personalize your coverage to meet your unique needs – not the needs of your co-workers or some other group of people. Once you are covered, the policy is yours to keep and control regardless of job changes.
Shop with an Independent Agent
If you are looking to protect your family with a new life insurance policy, start your search with an independent agent. Not only will you have the support and guidance of someone who understands the industry, but you will also have access to quotes from multiple insurance companies – something a captive agent cannot generally provide.
Contact Frank Isadore today for more information about Illinois life insurance options. We look forward to serving you soon.
