Posted on Wed, May 22, 2013
When obtaining life insurance quotes, lots of questions can arise. We’ve heard them all, but there are some that we hear more often than others. We’re sharing the top five life insurance questions and the answers below.
1. Why Do I Need Life Insurance?
Life insurance is the safety net to protect your family should the worst happen. Everyone should have life insurance, for reasons that range from income replacement to paying for funeral expenses or mortgage payments.
2. How Do I know How Much I Need?
A life insurance calculator can help you determine how much you need, but a general rule is to factor in the following:
- Your income
- Any debts, including mortgage payments, loans and credit card debt
- Funeral expenses
- Future college education for children
3. What are the Different Types of Life Insurance?
There are two basic types of life insurance, term life insurance and permanent life insurance. Term life insurance is a policy that lasts for the length of a specific term, typically for 5, 10, 20 or 30 years. A permanent life insurance policy lasts for the entire lifetime of the policyholder, even if they live to 100. Term life insurance is typically a less expensive option, but a permanent life insurance policy can have a cash value option, which helps you save money over time.
4. Can I Have More than One Policy?
Yes, you can have several life insurance policies. In fact, if you are relying only on a life insurance policy through work, it’s recommended to get another policy. It’s common to have a permanent life insurance policy for long-term needs and a term life insurance policy for more immediate needs, like mortgage payments or college education.
5. How Much Does Life Insurance Cost?
The cost of a life insurance policy can vary, depending on your age, health situation and other factors. A life insurance policy will be cheaper when you are young, because you are typically in better health and not nearing death. As you grow older, the premium rates usually increase.
To get an accurate picture of how much of an investment life insurance will be for you, take the time to get a life insurance quote.
Do you have more life insurance questions? Contact us today.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Mon, May 20, 2013
It’s easy to forget the details of an insurance policy you purchased years ago. Many simply receive their premium bill each month, pay it and go on their way. But it’s important to review your life insurance policy from time to time for many reasons, four of which we share below.
1. Know What You Have
You can’t know if you have enough life insurance if you don’t know what you have. Make sure you understand all of the death benefits, and are comfortable with the amount your dependents will receive if you pass away.
2. You May Need More
If you purchased a policy many years ago, life has probably changed for you. You may now have children or other dependents who rely on your income. If you’ve gotten promotions or new jobs over the years, your salary may have changed, as well as your standard of living.
Make sure the policy still has enough of a death benefit to cover all of your expenses. To ensure you know exactly how much you need, use a life insurance calculator.
3. You May Have Accumulated Cash
If it’s been a long time since you purchased a cash value whole life insurance policy, you may have a lot of accumulated cash in the bank that you weren’t aware of. Accumulated cash can increase your death benefit payout or even lower your premium payments down to zero. You could also use the cash to take out a loan.
4. You May NOT Have Accumulated Cash
A policy with a cash value component is especially important to review annually, if possible. It may not have performed as projected and could run out at an earlier age than you expected. An annual policy review can help you determine how the policy is performing and if you need to take out another one.
Staying informed and on top of your life insurance policy can prevent headaches later. Review your policy as often as you’d like, but at least try for an annual review.
Do you have questions about what you should look for in a policy review? Contact us today.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Sat, May 18, 2013
It is one important factor that stops many from purchasing life insurance: premium rates. If you’re worried life insurance rates may be too expensive for you, check out our list of 9 things or habits that may increase life insurance rates. You may be surprised to learn life insurance won’t be as expensive as you thought.
1. Age
Age is an important factor in life insurance rates because the younger you are, the lower your premiums will be. As you age, premiums increase because death may be coming closer.
2. Smoking
If you’re concerned about life insurance rates being too high, smoking is one habit you may want to quit. Being a smoker can raise your premiums considerably.
3. Medical History
If you have a medical history that includes serious diseases such as cancer, heart disease or diabetes, among others, you may see increased life insurance rates. You may be surprised to learn, though, if you are keeping your disease under control with regular doctor visits, rates won’t be as high as you think. If any of these diseases or illnesses run in your family, consider buying a whole life insurance policy young, to keep rates low.
4. Obesity
There is no way around it, being obese can increase your life insurance rates. It can also lead to other diseases and affect your overall health. But the good news is that life insurance companies do take into consideration weight loss, so if you’re working towards losing weight, you can watch life insurance premiums shrink, too.
5. Alcohol Consumption
A high level of alcohol consumption can increase your life insurance rates because it can lead to alcohol-related diseases and illness.
6. Gender
Surprising but true! Because men have a lower life expectancy overall, they may see a slight increase in life insurance rates. As a male, buying a life insurance policy young could help keep premiums low.
7. Motorcycle and Bad Driving
If you have a history of bad driving such as DUIs and excessive tickets or drive a motorcycle, expect to see higher life insurance rates. Rates are higher in this instance because bad driving or motorcycle driving can increase the risk of injury or death from accidents.
8. Use of Drugs
In some cases, use of drugs may prohibit you from getting life insurance at all. If drug use shows up in a urine or blood test during the routine life insurance medical exam, your premium rates could rise.
9. High-Risk Occupations
A high-risk occupation such as police officer, oil rig worker and fire fighter, among others, can increase your life insurance rates because of the danger associated with your profession.
Which habit or thing on our list surprised you the most? Share in the comments below.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Thu, May 16, 2013
Once you’ve reached the golden years of retirement, many stop and wonder if they need to continue paying life insurance premiums. Financial planning professionals are divided on the issue, but life insurance can have many uses, even if you are no longer working.
Most people use life insurance as income replacement, so that if you pass away, your dependents don’t have to worry about your income suddenly disappearing. If you’re retired, your steady income from work is gone, but that doesn’t mean you don’t need life insurance. A life insurance policy can cover many things besides lost income.
Debt
If you are leaving behind any sort of monthly payment, such as a mortgage, hospital bills or credit card debt, your loved ones left behind could be on the hook to continue paying off the debt. This is particularly true with mortgages. You don’t want your loved ones to not have a home any longer after you pass away.
Funeral Arrangements
Funeral costs are becoming increasingly more expensive. If you don’t have enough money set aside or readily available to pay for a funeral, consider taking out a small life insurance policy that can cover those costs.
“Death” Taxes
If you have a large estate or leave behind a significant amount of money, your heirs could have to pay “death,” or estate taxes. A life insurance policy could help cover the cost.
Living Expenses
Even though you are retired, your family still probably has living expenses such as food at home, eating out and transportation, among other things. If you help with those expenses and know you don’t have enough saved to leave behind for your dependents, a life insurance policy can help maintain the same standard of living.
No matter what stage of life you are in, a life insurance policy can be a good financial tool to ensure your loved ones are financially stable, even when you’re gone. Life insurance rates can be low enough that paying them monthly is not a burden. Visit us today and get a free life insurance quote.
Are you planning on purchasing life insurance for retirement? Why or why not? Share below.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Tue, May 14, 2013
It's always important to remember that life insurance is really more about the living than about the deceased. After all, if you're the one to be covered, you won't be around to reap the rewards of a smart term life policy. We do this for the people we love, and knowing that is often what gets us moving to make sure they won't have to suffer unnecessarily if something were to happen to us.
But another thing that drives many buyers exists on a more personal level.
Do You Ever Have Sleepless Nights?
Don't we all...
You're lying in bed one night, trying to rest up for the following day, and suddenly something triggers this feeling of...of being small and vulnerable. It might be the sensation of your spouse's hair against your shoulder. A breeze through a window. Your child's voice from the other room.
Or even just a chain of thoughts that leaves you suddenly contemplating the human existence and temporary nature of life.
These moments can overwhelm you, and after you're done reeling from the stark realization of your own mortality, your thoughts return again to your family. Of how they would manage if you were gone. Whether the children would get to go to college and how your husband or wife would bear the brunt of the world on their own.
Life Insurance and Peace of Mind
Life insurance has so many practical solutions for the working adult, especially parents. It can pay off the debts. It can settle the mortgage, once and for all. It can replace your income, pay for an education, or buy your child their first house. It can provide a spouse with long-term care.
At the very least, it can cover your funeral costs and ease a horrible but sometimes unavoidable transition.
But on a personal level, life insurance brings the ultimate peace of mind. You can lay your head on the pillow at night and sleep well in the assurance that one more crucial thing is already provided for - that it's set in place and taken care of.
That's Emotional Freedom, Plain and Simple.
Ease your fears today by giving your family the protection they need and deserve. It's the only way to weather the storm before it ever has a chance to come. You can contact a licensed agent with your questions here.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Sun, May 12, 2013
When most people think of life insurance, they think of a young professional with a family to feed. Not an individual who has had a lifetime to establish an asset base and settle their debts. But in this day and age, American citizens are living longer than ever, and with the economy, a lot of individuals are finding investments and retirement funds have not grown as robust as they imagined.
Unfortunately, it does cost quite a bit more to insure older individuals, resulting in a point when the costs can outweigh the benefits. But when does life insurance make sense for a senior citizen?
Are You Healthy for Your Age?
Keep in mind that some older individuals invite far lower rates than others. If you've stayed active and healthy over the years, your medical underwriting examination may go far better than expected.
Age does play a role, but if you're not average, don't compare yourself to the average citizen; remember, most people have done little to maintain their vitality over the years, and you may be an outlier in this department.
Has Everything Worked As Planned?
Perhaps you thought you'd have a plan for settling your estate by now but it hasn't worked out. Maybe you thought the debts would be taken care of, but it just never happened. Or maybe the retirement plan you set up to carry you and your spouse has gone under.
Maybe you'd like to leave something behind for our children when you're gone and still don't have a vehicle for making it happen. If you never got the chance to acquire assets, savings, or real property to pass down through the family, this could be a chance to bestow a windfall upon them with your passing.
All That Matters Are Your Personal Details
It's generally said that most senior citizens don't need life insurance because of two distinct reasons:
1) Their other investments have generally paid off by the time they need assistance.
2) Life insurance is more expensive for them.
While these are valid points, things often don't go as planned. And at the end of the day, a decision to purchase life insurance should be based on your particular circumstances. No one else's.
Only a qualified insurance professional can give you the real story based on your real circumstances. Get in touch with a licensed agent now.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Fri, May 10, 2013
If you're expecting, finances are the last thing you want to think about right now. Yes, you know having a child is expensive and that the high costs will continue for another eighteen years (far longer than if you talk to most seasoned parents). But you're just going to take it as it comes and adjust as needed, right?
There's no doubt that pregnancy is an emotional thing for all of us, and as humans, we often respond to the coming challenge with a mixture of passion and emotional toughness.
Embracing the “Calm Before the Storm”
But while that “rise to the occasion, come what may” attitude is a valuable trait for any parent, the best time to plan for financial responsibilities is before you have the baby. If you think it's stressful now, think about what it will be like when a crying infant is keeping you up nights, when only one parent is working, and when the cash-flow realities hit you.
You know it's coming, so sit down and handle this now while there's still relative peace in the household.
An Important Customer Among Many
While every individual is important to life insurance providers, it's not hard to see why life insurance is so important for the young parent. There are many years left in which something can go wrong, and children are far more vulnerable to twists of fate than the rest of us.
On top of that, very few young parents have had the time to pull together enough resources to self-insure. They have a small estate, if any at all, and many even be facing debt.
Indeed, life insurance is almost perfectly suited to the young parent and their unique problems.
Timing is Everything
If possible, it's always best to get a head-start before the baby is born. The odds are that nothing will happen, but it's best to play it safe when a young child's security is at stake.
Getting a head-start is even more crucial if insuring the mother, as developing pregnancies complicate the medical underwriting process, due to variables such as taxed physical condition and even postpartum depression (after the child is born).
Generally, the earlier in the pregnancy the better – and if at all possible, go through the process before becoming pregnant.
Finding Life Insurance Solutions that Fit Your Reality
Perhaps you don't think an expense like life insurance is within reach of young parents. Well, since young parents are in such a vulnerable position, having a lower income and a particularly high need, great solutions for this particular demographic have become a permanent fixture in the marketplace.
Enter term life insurance- the beauty of term insurance is that premiums are directly based on age and physical condition, meaning that most young parents should qualify for a very low rate. The idea is that you can get the coverage you need now and then focus on more long-term solutions when you have a higher income. To speak with a qualified professional about term life solutions, click here.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Wed, May 08, 2013
It's a sweet feeling to purchase life insurance coverage knowing that you are in great health and don't need to worry about the underwriting process. This is the best time to buy life insurance. You get a head-start by locking in a low rate now and you successfully circumvent the risk of waiting too long and suffering unforeseen health problems that might render life insurance inaccessible.
So you find a policy that sounds good, book an appointment, and breeze through the medical exam. Contrast this with an older, unhealthier life insurance prospect who bites their nails from start to finish, wondering if they'll ever find a policy they can afford, and it sounds like a pretty sweet deal.
But is it?
Why Keep Shopping After You Found Coverage?
As a healthy individual it’s tempting to take a complacent, passive approach to the life insurance process. After all, you'll get a fair price no matter what, so why shop more than you need to, right?
Well, there's no reason to pay more for insurance than you need and a bit of shopping around and comparing quotes from different companies can lead to an even lower rate and more savings. Doesn't that sound nice?
Compare More Than Just Prices
Another dynamic that applies to life insurance policies is that they vary on far more levels than price. Sometimes, for example, comparing a more expensive policy side-by-side with a cheaper one will show the pricier one is a better buy. Two similarly-priced policies may differ greatly in coverage as well, and a cheaper policy that is equal to or better than your current policy may exist!
One thing to consider is that riders often add to life insurance policies, which increase their capabilities and strengthen your coverage. Know your options.
What if Your Health Changes, For Example?
This can cause big problems if you don't have a term conversion rider on your policy. If you have the option to get a similarly-priced policy but can switch it to a permanent life if your health suddenly declines, that presents a great buying opportunity. Be sure to speak with a professional about the different types of riders on the market.
As you can see, doing your homework and asking questions pays off even if you're as healthy and vibrant as ever. Get in touch with an agent to discuss your options or compare quotes from different companies. They're standing by right now!
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Mon, May 06, 2013
Are you currently shopping around and trying to decide on the best life insurance solution for you and your family? Many young insurance buyers find themselves instantly caught up in an age-old argument that goes on in the life insurance industry about whether permanent life insurance or term life insurance is the best solution.
Upon analyzing the details, it's a fair argument, but too many insurance experts get caught up in the details that they forget what's most important to the “average person” – and that is to make sure their family gets covered, and fast!
The truth is this heated discussion will never go away, so we won't attempt to settle it here. But let's have a quick look at the contrasts and then we'll tell you the number one reason the answer really has no bearing on the majority of shoppers.
Term vs. Whole
Just to catch you up to speed, permanent life insurance is a policy that lasts your entire life. The plan has a cash-value component, part of which is invested, and it builds up interest over time to create an asset. The cash value can serve a multitude of purposes upon your death, or later in life, should you choose to borrow against it or cash out.
The main drawback to permanent insurance is that it is typically the more expensive option. This is especially challenging for young people, who ironically need more insurance, if they haven't had time to build up clout in their careers. On the other hand, the higher starting rate becomes a plus when you consider that the premiums remain level for your entire life and don't get more expensive as you age.
Term life, on the other hand, is not permanent. There's no cash value, so when the term is over, the policy is void. Term life is cheaper because the risk is based solely on your age and health at the time of taking out the policy; of course, the flip side is that older people are at a disadvantage and will eventually be uninsurable. The one defining advantage, is that term life insurance makes coverage more accessible to young people who need it most.
For Many, Term is the Only Life Insurance Possibility
Simply put, many people would simply forgo life insurance if not for term life. In fact, a lot of would-be shoppers look at permanent life insurance, assuming it's their only option, and immediately decide coverage is not within their budget. This is tragic because no one, especially a young parent, should go without coverage.
And with term, it is within their budget.
It is important to select a policy that makes sense for you, taking into consideration what you can afford.
Term life is the right solution when facing the risk of giving up on insurance and leaving your family vulnerable. To discuss your options with a qualified agent, contact us today.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Sat, May 04, 2013
If this coming Spring is set to arrive with an announcement to friends and family of a baby on the way, you're no doubt already feeling the pressure. New beginnings bring a lot of reason for joy, but they also mean working hard to prepare for your new bundle of joy.
Your life is going to change in many ways, some challenging. And while you're feeling overwhelmed, right now, during the relative calm before the storm, is a great time to sit down and have a hard look at finances and learn why life insurance for parents is important.
Take Stock of Your Finances
It's time to get as honest as possible with yourself about the state of your finances.
If you have debt, for instance, enact a slow and steady plan for eliminating it completely; poor spending habits and bad credit are a shaky way to start off parenthood.
List your debts in a spreadsheet. You can attack them by targeting the debts with the highest interest first or the smallest debts first, regardless of interest (as promoted by Dave Ramsey's Debt Snowball philosophy). Each method has its merits, but don't get caught up in minutiae; just do something.
Planning for the Future
Plan out your financial future. This may include setting career goals, and if one parent won't be working, the other may want to get more ambitious in order to make up for lost income.
Do you want your child to go to college? Set up a college fund, even if it's sustained by a minimal monthly savings allotment.
The coming years may also distract you from your own future, so it's a good time to have a discussion with your spouse about retirement.
Applying for Life Insurance
Life insurance can serve many important roles for a young family as well. Supporting all involved if the breadwinner passes away- ensuring a child's education, settling those pesky debts, or even providing for long-term care.
And there are, fortunately, some fantastic term life options that put great coverage within the reach of even the youngest of parents, no matter what their current income.
To speak with someone about how life insurance can protect your family-to-be, contact us today. The future is coming.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com