Life insurance provides cash when you need it most. 

Your life insurance policy will deliver a specified sum of money when you need it. Upon your death, your family will receive your policy payout immediately. That death benefit is not subject to federal income taxes. For example, a $500,000 policy provides $500,000 in death benefit proceeds directly to your beneficiary.

Steps in the insurance buying process:

1. Determine your goals, how much insurance you need to meet your goals over time, and what you can afford to pay. A typical rule of thumb is 8 to 10 times your income for the death benefit and a term length of 20 years.
2. Talk to your agent to get matched with the best insurance company for your situation and then apply for the policy.
3. Work with the life insurance company to answer the health questions/take a medical exam (blood, urine, height weight, etc.).
4. Underwriting will finalize your quote after determining your health tier and will provide a final proposal to you.
5. Once your payment is made, your policy will become active.

Remember, working with an agency like ours will make this whole process easier. We can help explain the differences between types of policies, help you calculate the amount you need, and present potential options that may best suit your needs.

Why get life insurance?

Life insurance can give you lasting peace of mind that you have provided a legacy. Of course, you must make a long-term commitment to pay premiums to keep the policy in force.  The most common reasons you should purchase life insurance include:

1. Guaranteed protection

If you have a family, a business, or others who depend on you, the life insurance benefit acts as a financial safety net. When you die, your beneficiaries will receive a lump-sum payment that is guaranteed to be paid in full (provided all premiums are paid). It’s essential protection you can count on for your loved ones when needed.

2. Income replacement

Imagine what would happen to your family if the income you provide suddenly disappeared. With life insurance, you can help make sure that your loved ones have the money they need to:

• Pay the mortgage
• Afford childcare, health care, or other services 
• Cover tuition or other college expenses 
• Eliminate household debt
• Preserve a family business

3. Tax-free benefit

Your beneficiaries will be able to enjoy every penny you leave them. The benefit amount of a life insurance policy is federal income tax free.

Life insurance pricing is based off many factors, including your age, health, and tobacco usage. It is best to purchase life insurance when you are young and healthy. As you age and potentially develop medical issues, life insurance becomes more expensive. Depending on the situation, you may not qualify for a policy later in life. Below are some examples of recent cases:

1. 30 year old male, healthy, non-tobacco. 20 year term policy with $500,000 death benefit. Premium is $220 per year (or $18 per month)

2. 35 year old male, healthy but smoker. 20 year term policy with $250,000 death benefit. Premium is $515 per year (or $42 per month) 

3. 40 year old female, high blood pressure, non-tobacco. 20 year term policy with $1,000,000 death benefit. Premium is $598 per year (or $49 per month)

If you are interested in a quote, please click below, or contact our agency at 262-432-0789.