Do you need life insurance?
Let’s be honest, no one wants to talk about life insurance.
It’s too morbid and not fun to talk about dying. But much like death and taxes, these two are certain in our lives. Whether we prepare for them or not, they will eventually happen.
Think about it, should something happens tomorrow such as car accident, heart attack or cancer and you didn’t make it out of the hospital, unfortunately, you’ll leave behind debts, bills or final expenses…
Having home insurance, car insurance, and health insurance are normal for most people to have set up; but if you have a family and dependents, one of the most important insurance to have is life insurance. Life insurance is a crucial step in planning for your future and the future of your loved ones. In the event of death, life insurance benefit or income tax-free lump sum to your surviving spouse, children, and family so they can live on comfortably and will help cover everyday expenses, like mortgage and household everyday bills like your children’s education or supplement your retirement funds.
The good news is…
Some life insurance policies not only provide cash received from a policy (the death benefit) when you pass away but can provide living benefits if you get diagnosed for some critical illness. Most carriers allow also you to advance or collect up to 90% of your death benefit (face amount) if you get diagnosed of some type of critical illness such as heart attack, cancer, end-stage renal failure or major organ transplant. You have the freedom to use this living benefit or cash to pay for your medical bills, everyday bills, debts, and future expenses while you’re recuperating. In addition to helping meet your family’s immediate financial needs, life insurance can also be used to help keep your business going and thriving. For more details, read more here: Life Insurance Policy with Living Benefits.
Protecting yourself with life insurance can give you a certain comfort & satisfaction that your financial stability is solid, secure, and even permanent.
Think with me here…
If you have a machine that spits out $5,000 a month, won’t you insure it in case something tragic happens? In case it falls apart, or if accidents happen, this machine can continue to spit out $5,000. Well, that machine is you to your family. Add or deduct how much ever income you bring to provide for your family…. Once you’re gone, your income is gone forever but your family’s daily expenses will continue for a lifetime.
Is life insurance expensive?
Several factors are used to calculate rates for Life Insurance. Even though some insurers may give you an estimated quote based on your age(cheaper when younger), gender, the policy type and amount of coverage you are seeking, most of them won’t be able to give you the final rate unless you have answered all the probing questions regarding your health history and a physical exam. This is the reason why it is best to talk to a trusted life insurance consultant who can help you shop for affordable life insurance and assist you in digging deeper thru all life insurance aspects.
But, how much Life Insurance should you avail?
Sorting thru what expenses you may leave behind once you pass away is a great way to sort your financial information. And if you do not have family or dependents to care for, an insurance plan that covers funeral expenses, taxes, medical bills or any other final expenses that you may leave behind. One of the most common formula is to buy a life policy that’s 7-10 times more of your annual salary or how much ever debts or expenses you may leave behind should you pass away.
Types of Life Insurance in Oregon:
- Term insurance
Is mainly a good choice for your family in earlier years when the need is the greatest. It’s also very affordable for a high level of coverage or face amount. This may make sense if you have a young family and if the budget is tight. It provides protection for a specific period of time; and mainly pays a benefit only if you die during the term. This type of insurance makes sense when you have a need for coverage that may disappear at a specific point in time; like college education for your kids and mortgage.
- Whole-life insurance
Is permanent coverage. It mainly covers you for the rest of your life. It’s a combination of life coverage with an investment fund. This plan also pays a stated, fixed amount on your death; and part of your premium goes toward building cash value from investments of the insurance company. Cash value builds tax-deferred each year that you keep the plan, and you can borrow against the cash accumulation fund without being taxed. The amount you pay usually doesn’t change throughout the life of the policy.
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- Universal Life insurance (UL)
Is a type of permanent insurance policy. It combines term insurance with a money market-type investment that pays a market rate of return. To get a higher return, these plans mainly don’t ensure a certain rate.
- Variable life and Variable Universal Life insurance
Are permanent policies with an investment fund tied to a stock or bond mutual-fund investment. Therefore, returns are not guaranteed.
- Indexed Universal Life (IUL) insurance
Is permanent life insurance that offers death benefit protection when loss of life occurs. Like other forms of permanent life insurance, your premium payments may earn interest and grow the cash values of your plan. What differentiates IUL from other permanent life insurance is the way interest is credited to the policy. In addition to the company offering its own declared interest rate, IUL also offers an interest option linked to the movement of a selected stock market index over a specific period of time. The manner in which interest is credited to your IUL policy gives you the potential for strong cash value accumulation. A key benefit to remember is that it offers protection in a poorly performing market. With IUL, you don’t join directly in the stock market and the credited interest rate is never less than zero percent, guaranteed!
- Life Insurance with Living Benefits
This is a good choice if you want to get access to cash in times of difficulties – while you’re still living. If you face qualifying chronic, critical, or terminal illness, you can use it to pay for care or treatment that may not be covered by your health insurance plan, cover other household expenses or pay for anything that can help you thru a difficult time. You see why this type of life policy is becoming a popular choice.
Term Life Insurance vs Permanent Life Insurance
- When you choose Term Life insurance, it allows you to buy a high amount of coverage at a very low and affordable price. If you’re going to need a large insurance policy for your family’s needs such as a college education fund, Term Life insurance is your better option. The main goal here is to have a huge coverage during the years that you need it most, within rates that you can afford. However, the disadvantage of Term insurance plans is that they do expire and these policies have no cash value.
- When you choose Permanent Life insurance, you are purchasing a policy that is also an investment vehicle because it accumulates cash value over time. In addition, the money you out in can be withdrawn or borrowed against at any time if the need arises. And of course, it doesn’t expire. The only disadvantage in getting Permanent Life insurance is that it has a high rate and oftentimes unaffordable.
Do retirees need life insurance?
It is always a good thing to get life insurance, even for retirees. Why? It’s because life insurance policies are meant to pay off debt, leave a legacy or provide for a life partner in the event a pension won’t include survivors benefits. So, as a retiree, if you owe someone, care for someone or a member of the family depends on you financially, you’ll need life insurance.
But what if you do not have any dependents?
Do you need life insurance even if you don’t have anyone to leave behind when you pass away? The answer is YES. This is where Life Insurance with Living Benefits will comes in. It is also termed as the “life insurance for the living”. Here, your “Living Benefits cash” will support your needs in paying for recovery and other expenses in the event that you get sick and unable to perform or work for an income or when you become incapable of doing activities of daily living. Some of these life policies will allow you to cash out some of your face amount.
Talk to your trusted life insurance consultant.
Health Plans In Oregon is your licensed insurance agent providing help to thousands of Oregonians since 2006. We provide free help with regard to life insurance quotes and different policies. Let us help you achieve a financially-secured life you’ve always wanted. You may book for a face to face appointment at your most convenient time.