Less than half of population ages 25 to 64 have individual life insurance coverage. At the same time, 40% of families with children under age 18 said they would have immediate trouble paying expenses if the primary breadwinner died.
All too often we get calls about life insurance after a close call, loss of a close friend or relative, or after it’s too late. Unlike home and auto insurance where coverage is usually required by third parties, it is up to you to make sure you have the proper life insurance to protect your family, but we can help.
Are you getting your money’s worth?
The biggest concern of 54% of consumers looking to buy life insurance is whether they are getting their money’s worth or not. Practical Insurance Solutions has access to dozens of life insurance companies. That means when we provide you with pricing on life insurance you know your are getting a fair price because we have shopped the market for you.
Is your insurance company financially strong?
Perhaps the most important item to consider when purchasing a life insurance policy is how financially sound the company is that you are buying the policy from. This is often a very big mistake that consumers make when buying any type of insurance policy, but especially life insurance. If you buy a 30 year term policy, you want to make sure the company is still around in 20 or 30 years. We often hear of people buying a policies because it was from “a company that they have heard of before.” This is a poor way of making a decision about any financial product. However, how are consumers supposed to know what companies they can trust? Practical Insurance Solutions vents all of the life insurance companies we work with to assess their financial integrity and long term stability. This is what should be most important to you, the consumer, too. Furthermore, because we are an independent agency and not captive to any particular insurance carrier, we sell the products that are best for our customers, not what products the insurance companies want to push.
Life insurance can fund many types of expenses:
Burial and other final expenses-
Funeral Cost, Uncovered Medical expenses, Estate Settlement Cost, Taxes
Income replacement and ongoing expense
Food, Housing, Utilities, Transportation, Health Care, Clothing, Insurance, Mortgage, Car loans, Credit Card Debt, Taxes
College, Retirement, Weddings
Transfer wealth to family
You can leave more money to your family when you add a life insurance policy to your estate
A tax-advantaged way to build cash value
You can realize tax advantages by utilizing policies that build cash value
The two major categories of Life Insurance:
Term Life Insurance
Term insurance provides coverage for a specified time period (usually 5 to 35 years), at a set premium. Basic term insurance is usually the most affordable type of life policy. Term policies do not accumulate cash value.
There are three key factors to term insurance:
- Face amount ( the protection or death benefit amount)
- Set premium to be paid (the set yearly cost to the insured)
- Length of coverage (term)
Permanent Life Insurance
Permanent Life Insurance is an umbrella term for life insurance plans that do not expire. They remains active until the policy matures, unless the owner fails to pay the premium when due. The policy cannot be cancelled by the insurer for any reason except for fraudulent application. Permanent life policies can offer you coverage for your lifetime with a potential cash value.
There are two main types of permanent insurance whole life and universal life.
Whole Life Insurance:
Is a life policy that pays a benefit on the death of the insured and also accumulates a cash value.
Universal Life Insurance:
Is a flexible permanent life insurance product that tries to combine the low-cost protection of term life insurance as well as a savings element (like whole life insurance). This type of policy tends to be more flexibility then a traditional whole life policy.
Term Insurance vs. Permanent Insurance
Both types of policies have their pros and cons. Term insurance tends to be much cheaper and is a good choice for many people. Permanent policies have some clear benefits above Term Policies and can be a great tool to build and pass on wealth, but they tend to cost much more then term policies. The best way to determine the right product for you is to do sit down with a professional independent agent and do a “Needs Analysis”, to determine the right policy type for you.
Important: Remember that life policies are legal contracts and the terms and features can vary dramatically between types of policies and carrier offerings. That’s why we highly recommend that you purchase life insurance only through an Independent Agent. It does not cost you any more to have an independent agency on your side versus buying from an insurance company’s call center. Furthermore, since independent agents do not work for one particular insurance company they are never forced to sell a particular type of policy and they can better advise you in finding the best policy for your individual needs from the open market. They can also give you multiple policy options from multiple carriers. Be very leery of anyone that is trying to push one particular product without showing you other options. Furthermore, be leery of anyone that tries to push you towards a Permanent Insurance Policy, before you have maximized other savings vehicles first like 401ks and IRAs.
Contact Us today! For more money saving tips or a free policy review and insurance quote, call us at (888) 539-7520 or feel free to email or fax us your current policies for a comprehensive review and comparison. Fax: (636-352-2878) Email: firstname.lastname@example.org. We currently service the states of Missouri, Illinois, Florida.