When the decision is made to purchase life insurance, and the search begins to find the right policy, many are focused on simply finding the right price. They do not realize that life insurance coverage is not all the same for everyone, and different policies will offer various types of coverage. In order to get the perfect policy, it is important to understand some fundamental elements of life insurance.
First of all, there are different policy terms that offer defined beginning and ending dates of coverage. These are called term life policies, and their benefits will end when the term ends unless the insured elects to extend coverage. In order for the insurance to pay a death benefit, the insured must pass during the covered term. For most policies, the premium will stay the same throughout the term. For example, if a 20 year term is chosen, the premium will stay the same each year until the policy ends. If the insured chooses to keep the policy, they will pay a higher annual premium. Term policies also offer a set coverage amount. Term policies can be purchased at almost any benefit increment from as little as $10,000 to benefits that pay in the millions. An advantage of a term policy is the premium is usually cheaper because it is for a defined period of time.
A whole life policy pays a death benefit as long as the policy is paid and in-force. It is not limited to time increments like a term life policy. Most policies that are commonly referred to as burial policies are whole life policies. The greatest advantage to this type of life insurance coverage is that the insured is covered for their whole life. The greatest disadvantage is the premiums tend to be higher compared to term policies for the same coverage.
There are life insurance policies that offer benefit riders that can be utilized before the insured passes away. For example, you can include riders that will pay for skilled nursing care or for someone to come into the home if the insured is diagnosed with a chronic or terminal illness.
Choosing the right life insurance coverage mainly depends on the family's current financial needs. If there is a mortgage, college tuition and other major obligations, a family would require more insurance should the unthinkable happen. We can help you get just the right affordable life insurance policy to protect your family now and in the future. Call us today for a free consultation and quote.
If you are the sole or primary breadwinner in your family, it is imperative that are covered by a life insurance policy. Going through life without life insurance is not only irresponsible, it could lead to financial ruin for your spouse and children. If they were dependent on your income for their survival, they would be left destitute if you were to die suddenly. If you still owed money on your house, they would lose that as well. Having life insurance prevents these horrific scenarios from occurring by giving your surviving family members money to support themselves. You might also consider getting medicare supplement insurance. This type of policy helps to pay for some of the costs not covered by Original Medicare, such as deductibles, coinsurance and copayments. Here are some of the benefits of being covered by a life insurance policy.
It Protects Your Family
The primary purpose of life insurance is to provide the means for a family to live comfortably when the main or primary breadwinner is no longer around to support them. Along with paying for the mortgage, rent, groceries and utilities, life insurance can also be used for college tuition and the estate taxes that the families of deceased people will need to pay.
You Can Use the Money While You Are Alive
If you need money for some reason while you are still alive, you will be able to take out a loan against your life insurance policy's value. One of the really great things about borrowing money in this manner is that the interest rates are much smaller than those that are charged by banks, credit unions or various online lenders. You will have the option to repay the amount of money you have borrowed in installments or all at once.
Premiums Do Not Change
This is true in the case of term life insurance. When you are covered by this type of policy, you do not need to worry about your provider raising the price of premiums. You will be locked in at a set rate for the complete length of your agreed upon term.
If you would like to learn more about medicare supplement insurance, or any of the other policies offered by Bankers Fidelity Life Insurance Company, visit https://bflic.com/ or call them today at 1-866-458-7504. Once of their knowledgeable representatives will be happy to answer any questions you have.
Life insurance plans are one of the most difficult things for people to talk about. Much like writing a final will and testament, searching, planning, and ultimately purchasing life insurance policies can be a rather disconcerting experience as one faces their own inevitable fate, but that's no reason to put it off. Whether you're looking for life insurance MN (in Minnesota), life insurance CA (in California), or anywhere else in the country it's important to secure a life insurance policy sooner rather than later.
One of the nice parts about life insurance policies is the fact that they can be purchased at almost any benefit increment, from as little as $10,000 to benefits that pay in the millions. As the number of people approaching retirement and senior ages steadily increases, the need for a quality life insurance policy will only grow with them. In fact, by the year 2030 the last baby boomers will turn 65 and one out of every five Americans (about 72 million people) will be an older adult, according to The State of Aging and Health in America (2013).
Here are three reasons having life insurance in MN and in all other areas in the U.S. is so crucial.
Plan for the Unexpected: It may sound cliché, but you never know what life will throw at you. For instance, you could buy a life insurance policy today and [hopefully] won't have to use it for years to come. Sure, it will cost money, but it's important to look at it as an investment in the future of your beneficiaries rather than a personal expense. Living without life insurance means you're leaving yourself open to the risk of something unfortunately tragic happening and leaving your family/loved ones to figure out a way to handle it on their own.
Better Early than Late: In addition to the unpredictability of life, investing in a life insurance policy early means a better chance of finding competitive rates and available plans. Not only will you likely have more discretionary income during your working years (as opposed to retirement when you could be on a fixed income), but you'll also potentially find better offers in general. That being said, the old adage of "better late than never" still applies too.
We All Die Someday: As uncomfortable and potentially terrifying as it may be, it is the truth. Approximately 83% of Americans ages 65 and older say they have grandchildren, according to the Pew Research Center, but if you're one of them living without life insurance you're doing them a disservice. Better to accept it now and prepare you and your family for whenever the fateful day does come than left heart-broken and financially crippled.
Whether you are living in the snowy foothills of Minnesota and have life insurance MN or living in the warm coast of California and have life insurance CA life insurance is crucial for every person, especially those that are approaching or have already reached their senior years. Don't wait, call Bankers Fidelity to find out how we can help today.
Life insurance is an important safety net that may provide for your loved ones when you are gone. Despite its importance, there are still a number of misconceptions and misunderstandings about how it works and what it covers.
While the rules for life insurance vary state to state (life insurance offerings in Arizona may not be available in Idaho, for instance), many of the most important tenets remain true.
This post is designed to help you understand four important things to remember when considering life insurance plans.
If you are financially responsible for another person, you may want life insurance: Whether it is a spouse, child, dependent parents, or employees of your business, you should consider life insurance so that the people in your life don't suffer if something were to happen to you.
Life insurance isn't a ‘Get Rich Scheme’: Daytime television might be full of stories of murder for life insurance benefits but the reality is that, in many cases, life insurance will cover little more than the cost of funeral services and outstanding debts. While it is true that benefit increments can range from $10,000 into the millions, whatever is left over will likely be necessary to help lessen the burden after losing a steady income.
There are different types of life insurance: One form is called Term Life Insurance. This is the popular type and can be less expensive in premium. It essentially only lasts through the term -- or amount of time -- it is in place, usually 10, 20, or 30 years.
Another form is Whole Life Insurance, which is designed to last the lifetime of the insured. With this option there is a cash value involved in order to sustain the policy.
Life Insurance is Probably Cheaper Than You Think: Unless you are applying for the top benefits, life insurance can be less expensive than most people believe. For someone in their 30s who leads a healthy lifestyle and doesn't smoke, policies may be available for less than $500 a year.
Life insurance is an important tool to protect your loved ones. This may give you a better idea of some of the core information about life insurance policies so you can start a conversation with an independent agent today.
Life Insurance policies are underwritten by Bankers Fidelity Life Insurance Company®, Atlanta, GA. Limitations and exclusions apply; actual policy provisions control. Application to determine eligibility required. Rates subject to change. Product availability and benefits can vary by state.
Term Life Insurance
Permanent Life Insurance
There are several situations in which a term life insurance policy makes sense, but there are some details of term life insurance that you must consider before making your decision whether such a policy is right for you.
"Term" Is Key
The most important detail of term life insurance that you can't overlook is that the word "term" means temporary. Unlike a whole life insurance policy, which provides you coverage for as long as you have the policy, term life insurance will come to an end at some point. For example, if you have a 30-year term policy, at the end of 30 years, if you are still alive, the policy ends and you get no benefits.
No Cash Value
Another detail you don't want to overlook with term life insurance is that you are paying for the death benefit only. Unlike whole life insurance, your term premiums do not generate any cash value that will grow over time. That means you can't borrow against the policy and will get nothing back if you end the policy early.
You Get a Lot More Coverage for the Money
When looking for the best term life insurance, one detail to make sure you don't overlook is that you can get a lot more life insurance coverage for the money than you would with a whole life policy. A young person who's in good health can easily get hundreds of thousands of dollars in life insurance coverage for just a few hundred dollars a year. If all you need is the peace of mind of a death benefit to protect your family in the event of your untimely death, a term life insurance policy may be your best bet.
Premiums Don't Change
Another advantage of term life insurance you should take into consideration is that the premium will never change as long as you keep the policy. For example, if you get $100,000 of term life coverage at $10 a month at age 30, it will still cost you $10 a month at age 59. Other types of life insurance often have premiums that increase as you get older.
If you are in the market for a term life or other life insurance policies, talk to the experts at Bankers Fidelity. The agents at Bankers Fidelity can find the right policy for you and help you make the right decision.
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Understanding Medicare Supplement
Neither Bankers Fidelity Life Insurance Company® nor its Medicare Supplement policies are affiliated with or endorsed by the U.S. Government, the federal Medicare program, or the Centers for Medicare and Medicaid Services. This is a solicitation of Medicare Supplement insurance and an independent agent may call on you. The Medicare Supplement products issued by the Company are insurance policies. Policy form series B 21092 is issued by Bankers Fidelity Life Insurance Company®, Atlanta, GA; policy form series B 21492 is issued by Bankers Fidelity Assurance CompanyTM, Atlanta, GA. Limitations and exclusions apply; actual policy provisions control. Rates subject to change on a class basis. Individually underwritten; application to determine eligibility required.
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