Are you confident that your family will be financially supported in your passing?
What Is Life Insurance?
Life insurance is an agreement between you and an insurance provider that, in exchange for your monthly payments, the insurer will pay a sum of money to your loved ones when you die.
Okay, it’s not a fun topic to think about. But focus on this: You buy life insurance not because you’re going to die but because those you love are going to live—and you want them to be financially secure after you’re gone.
Life insurance can cover loss of income, funeral expenses, debt and other financial needs that might come up after you pass away. What you are really buying is peace of mind—peace that you’re providing financially for your loved ones even after your death.
Pricing & Things To Consider
Here at Point 1 Insurance we work directly with insurance companies and our clients to help ensure you are getting the best rate possible. However, rates can vary widely and are based on many factors that relate to your life expectancy, such as:
- Nicotine use
- Medical history
- Family health history, such as heart disease or cancer among immediate family members
- Dangerous hobbies, such as scuba diving
- Planned travel to risky parts of the world
- Other risk factors, such as your driving record
Insurers typically verify the information in your application using some or all of these methods:
- Requesting your medical records from your doctors
- Getting data from past individual life and health insurance applications from MIB Group.
- Having you undergo a life insurance medical exam, including blood and urine samples and possibly an electrocardiogram
- Viewing your past and current medications via a prescription-drug history database
- Checking your driving record, generally for drunk driving convictions
Companies typically take several weeks to review an application and issue a policy. If you are interested in a Life Insurance Policy, let Point 1 Insurance assist you with your needs as well as any questions you may have.
Types Of Life Insurance
Let’s start with the basics. There are two main types of life insurance: one that lasts for a set number of years (term life insurance) and one that lasts through your entire life (permanent life insurance).
Term Life Insurance
Term life insurance provides coverage for a specific amount of time. If you pass away at any time during this term, your beneficiaries will receive the death benefit from the policy.
With traditional term insurance, the premium payment amount stays the same for the coverage period you select. After that period, policies may offer continued coverage, usually at a substantially higher premium payment rate. Term life insurance is generally less expensive than permanent life insurance.
Term life insurance proceeds can be used to replace lost potential income during working years. This can provide a safety net for your beneficiaries and can also help ensure the family’s financial goals will still be met—goals like paying off a mortgage, keeping a business running, and paying for college.
It’s important to note that, although term life can be used to replace lost potential income, life insurance benefits are paid at one time in a lump sum, not in regular payments like paychecks.
Permanent Life Insurance
Permanent life insurance lasts throughout your entire lifetime. It comes in the form of whole life, universal life or variable life insurance—each differing slightly from the other.
Each of these plans have different key factors to consider, and we would love to discuss potential options with you directly.
Do I Need Life Insurance?
Benjamin Franklin wrote, “Nothing is certain except death and taxes.” While we can anticipate the latter, the former is, unfortunately, less predictable. Almost everybody needs life insurance. No matter what stage of life you’re at, life insurance makes up an important part of your financial security for your loved ones.