Keeping Your Loved Ones Safe with Life Insurance

Your loved ones are at the center of your world. You pour your heart and soul into providing for them, ensuring their safety and security. But what if life takes an unexpected turn, and you're no longer there for them? No one wants to think about that happening. However, considering the emotional and financial impact of passing away can help you create a sturdy foundation for your family’s future. That's where life insurance can help.

A life insurance policy pays out money (also known as a death benefit) to your loved ones (beneficiaries) if you pass away. This payout can make a significant difference for your family during a very difficult time.

So, what should you understand about life insurance to ensure your family's financial security? Similar to others, you probably have plenty of questions like:

• How much coverage do I need?
• I already have life insurance through my employer, so do I need additional coverage?
• What is the process involved in obtaining life insurance?
• Are there other important details I should be aware of?

Take a moment to relax, catch your breath, and put your worries at ease. We're here to address your inquiries, helping you assess whether life insurance is a prudent choice for your family's financial well-being.

How to figure out your life insurance needs.

Life insurance can seem intimidating right out of the gate because of a central question: how much coverage do you need? Fortunately, there's a straightforward approach to getting a helpful policy for your family. A good rule of thumb is to make the payout amount (death benefit) ten times your annual income.

For example, if you make $60,000 annually, consider purchasing a $600,000 policy. This coverage means your family could receive $600,000 if you pass away. That amount can help cover numerous expenses and keep your family afloat while they grieve and face an onslaught of life changes.

But remember, life insurance isn't a one-size-fits-all kind of thing. Your circumstances can clue you into what amount of coverage makes sense. There are many factors to consider, so let's review some of them.

• Check your debts, like mortgages, loans, or credit cards, to make sure your life insurance covers them and eases the financial load on your loved ones.
• Look ahead to those big expenses, like your kids' college costs, and think about how they affect the coverage you need.
• Imagine how long your family would need financial help if something happened to you – whether it's a few years or longer.
• If you want to leave a little extra for your loved ones or support a cause close to your heart, include that in your coverage plan.
• Don't forget about inflation; make sure your coverage keeps up with rising costs for basics like food, fuel, and clothing.
• Account for any savings, investments, or other life insurance you already have, as they can help reduce the extra coverage you require.

I have group life insurance through work, isn't that enough?

Now, if you have life insurance through your employer, you might think no further discussion is needed. But not so fast - life insurance through your job usually provides a death benefit of 1 to 2 times your annual income. Based on the considerations we discussed earlier, that might not always be enough.

For example, if you're looking to send your kids to college or pay off a mortgage, you might need more coverage to ensure those financial goals are met. Plus, if you leave your job, you'll typically lose that employer-provided life insurance. So, it's not something you can always count on. That's why it might be worth considering a separate policy to complement your employer coverage.

That way, you're setting yourself up for a solid financial foundation to support your loved ones no matter what life throws your way.

What's involved in the life insurance application process?

When you're thinking about getting life insurance, it all kicks off with an application form from the insurance company. The form is like having a chat with them on paper, answering questions about your health, lifestyle, and sometimes even your hobbies. It's a health check-in to see how you're doing.

Based on your answers, the insurance company will decide whether to give you the green light and, if so, how much it'll cost you. If you're in good health and living a healthy lifestyle, you'll likely get the thumbs-up at an affordable price. That's why it's a good call to grab life insurance while you're young and fit – it locks in a better deal.

Now, if you're aiming for a big coverage amount (like over a million bucks), they might want to dig a bit deeper. They could ask for more info, like checking your blood pressure, noting your height and weight, and running some basic blood tests. This way, they ensure the coverage matches your situation.

Once you're good to go and your policy is up and running, remember to stay on top of your premiums, which are payments you make to keep your policy active. Setting up automatic payments is a smart move – it's easy, and you might even snag a little discount.

Keep in mind that life insurance is about looking out for your loved ones, making the effort to get it sorted is an expression of care and consideration.

How much does life insurance cost?

Life insurance providers are basically trying to figure out one big question: How many more trips around the sun do you have in you?

They use all sorts of info to give their best guess and work out those life insurance costs.

Now, what you dish out for life insurance isn't set in stone. Plus, every insurance company has its own secret sauce for pricing policies. But, here are some factors insurance companies may use to price your policy:

• Age and gender
• Height and weight
• Health history
• Family history
• You’re a smoker or drinker
• Driving record
• Criminal history

Remember, when it comes to life insurance, getting it sooner rather than later is like scoring a great deal on something you've had your eye on. The younger and healthier you are, the lower your premiums will likely be. It's like a little reward for being proactive about your financial security.

What else do I need to know?

Now that you've got the life insurance basics, let's dive into some important details. There are two main types of policies: term and whole life.

• Term insurance covers you for a set time (like 10, 20, or 30 years). If something happens during that period, your beneficiaries get a payout. It's cost-effective when you need it most, and at the end of the term, it ends.
• Whole life insurance, on the other hand, stays with you forever as long as you pay the premiums. It also builds cash value over time, acting like an emergency fund. But it's usually pricier than term.

Now, about the payout: the person or entity you name in your policy is the beneficiary. You can name more than one if needed. And there are secondary beneficiaries, stepping in if the primary is no longer available.

Remember, life changes, so update your policy accordingly. It's separate from your will, so manually add new beneficiaries. When reviewing your financial plans, don't forget to check your beneficiary designations—it's a quick but important step.

An act of thoughtful protection

Remember, protecting your family with life insurance is about providing the best life possible if something were to happen to you. Your policy is an act of love to those who matter most, easing the burden if you aren’t there.

Think about it: someone or something has to shoulder the financial burden if your family loses your income, and a life insurance policy means they won’t have to scramble to cover bills, mortgage payments, and other expenses. Instead, they can focus on healing, moving forward, and flourishing in the future.

If you have any questions or realize you need a policy, address your concerns today. Please feel free to contact us at 1-800-704-2180 to resolve any lingering questions or to begin an application online. Our dedicated team of friendly life insurance representatives is ready to assist you on the path to providing financial stability for your loved ones.