Personal Insurance
life Insurance
Personal Insurance Coverage Perfect For You And Your Family
Life Insurance Plans for NWI Residents
Many financial experts consider life insurance to be the cornerstone of sound financial planning. It is generally a cost-effective way to provide for your loved ones after you are gone. It can be an important tool in the following ways…
- Income replacement – For most people, their key economic asset is their ability to earn a living. If you have dependents, then you need to consider what would happen to them if they no longer have your income to rely on. Proceeds from a life insurance policy can help supplement retirement income. This can be especially useful if the benefits of your surviving spouse or domestic partner will be reduced after your death.
- Pay outstanding debts and long-term obligations – Consider life insurance so that your loved ones have the money to offset burial costs, credit card debts and medical expenses not covered by health insurance. In addition, life insurance can be used to pay off the mortgage, supplement retirement savings and help pay college tuition.
- Estate planning – The proceeds of a life insurance policy can be structured to pay estate taxes so that your heirs will not have to liquidate other assets.
- Charitable contributions – If you have a favorite charity, you can designate some of the proceeds from your life insurance to go to this organization.
Health & Life Insurance Facts:
70
percent of people said they needed a life insurance policy in 2020, according to LIMRA.
50
percent of people overestimate the cost of life insurance.
54
percent of Americans have life insurance coverage.
Term Insurance Vs. Permanent Insurance
Term insurance is the simplest form of life insurance. It provides financial protection for a specified time, usually from one to 30 years. These policies are relatively inexpensive and are well suited for goals, such as insurance protection during the child-raising years or while paying off a mortgage. They provide a death benefit, but do not offer cash savings. Purchasing term insurance is like renting a home. It is a short-term solution. Monthly costs are usually lower, but you will not be building equity. Just as many people rent (while saving to buy a home), individuals who need insurance protection now, but have limited resources, may purchase term coverage and then switch to permanent protection. Others may view term insurance as a cost-effective way to protect their family and still have money to put into other investments.
Keep in mind that premiums are lowest when you are young and increase upon renewal as you age. Some term insurance policies can be renewed when the policy ends, but the premium will generally increase. Many policies require a medical examination at renewal to qualify for the lowest rates. Before deciding on a policy, find out what the requirements are. Also, see if you would be able to convert the term policy to a permanent policy later on.
Permanent insurance (such as universal life, variable universal life and whole life) provides long-term financial protection. These policies include both a death benefit and, in some cases, cash savings. This type of insurance is good for long-range financial goals. Purchasing permanent insurance is like buying a home instead of renting. You are taking care of long-term housing needs with a long-term solution. Your monthly costs may be higher than if you rent, but your payments will build equity over time. If you purchase permanent insurance, your premiums will pay a death benefit and may also build cash value that can be accessed in the future.
A permanent life policy provides lifelong insurance protection. The policy pays a death benefit whether you die tomorrow or you live to be a hundred. There is also a savings element that will grow on a tax-deferred basis and may become substantial over time. Because of the savings element, premiums are generally higher for permanent than for term insurance. However, the premium in a permanent policy remains the same, while term policies can go up substantially every time you renew it. In a permanent policy, the cash value is different from the face value amount. The face amount is the money that will be paid at death. Cash value is the amount of money that is available to you. There are a number of ways you can use this cash savings. For instance, you can take a loan against it or you can surrender the policy before you die to collect the accumulated savings. Speak with an agent in person, over the phone, or by email to get a better handle on what kind of life insurance policies may be available to you through Valpo First Insurance!
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Keep Both You & Your Loved Ones Safe By Contacting Valpo First Insurance
Are you looking for life insurance options? Are you uncertain of the best choice for you and your family? Look no further! Our team can help provide the information and guidance needed to make an informed decision. We understand that everyone’s situation is unique, which is why we take the time to get to know each customer individually in order to craft personalized policies tailored to their needs.
Valpo First Insurance offers a variety of coverage options from term life insurance, whole life insurance, universal life insurance and more, so there’s something for everyone. Let us handle all your questions about life insurance policies. Contact our team today through phone or email, and we’ll work together to find the perfect plan for all your needs!