Why Do I Need to Consider Life Insurance?
You don’t need a seat belt to drive a car. However if you’re in a severe auto accident without wearing one, the consequences can be devastating to you and your family. Similarly, Life Insurance is a simple tool that can be used to protect the financial security of yourself and the people you love the most. For example, Disability insurance is an income replacement tool in the event of a accident or sickness. In the event of your death a tax free lump sum will be paid to a named beneficiary or in the event of a disability your earned income will be replaced until you can return to your occupation. These type of coverages can provide the insured a true sense of financial security knowing that in the event of death or disability their family will never be faced with a financial hardship.
What Are The Different Types Of Life Insurance Products?
Navigators (though our affiliate Hallmark Financial Planning Inc.) offers a variety of insurance options for protection that is tailored to your family’s needs. The following are some of the more popular products available:
- Term Life Insurance. If you’re expecting your first child, putting a mortgage on a new home, or looking to top up existing insurance protection, this is one of the more inexpensive life products available. A term life policy will expire at a specific age and is guaranteed renewable for a variety of term periods. If you die during the term period you have selected, a tax free payout will be paid to a named beneficiary. The longer the guaranteed term period the more you’ll pay in life premiums. Most term life policies will allow you to change or convert your term life contract to a permanent life (explained below) insurance policy easily – a very valuable feature if you ever become uninsurable due to health issues in future years. Continue reading …
- Permanent Life Insurance. This is a life insurance policy where the premiums you pay and the death benefit are guaranteed for the rest of your life. As long as you pay your premiums the amount of the death benefit will never decrease and the premiums will never go up. Another type of permanent life insurance that will provide a future dollar payout as well as the death benefit is better known as “Whole Life”. Premiums when purchased at younger ages are much more reasonable given the guaranteed features offered in this type of insurance product. Continue reading …
- Universal Life Insurance. This is a very unique life policy product which offers a guaranteed cost of insurance known as a “term to age 100” combined with the advantages of a tax sheltered investment. These life products are used for clients looking to find additional ways to help shelter funds and to defer taxes while at the same time provide a permanent life insurance solution. Continue reading …
- Critical Illness and Disability Insurance. Critical illness policies will pay you a lump sum if you are diagnosed with a critical illness, but the illnesses covered will vary from life company to life company. Disability insurance is better known as income replacement coverage. A disability policy will help to replace the loss of your earned income in the event of an illness or sickness.Please speak to an advisor before purchasing this type of insurance. No one disability plan is the same as all others. Continue reading …
- Mortgage Insurance. This type of life insurance is sold through most banks but has a decreasing death benefit value. In the event of your death the proceeds are to be used to help pay down your mortgage. This is one of the poorest forms of life insurance coverage you could ever purchase. When sold though the banks there are usually no medical questions asked (up to a $250,000 death benefit), but such insurance contracts will contain a “pre-existing medical condition” clause that could affect payouts. Continue reading …
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Who Is Eligible For Life Insurance?
Most healthy males and females can apply for life, disability or critical illness insurance. Depending on your age, underwriting requirements may include a blood and/or urine test. Additional medical testing may be required depending on how you answer the medical questionnaire provided in the application. The insurance company may write your doctor for additional medical information as well. If you answer all the medical questions to the best of your knowledge and provide full disclosure of any current medical conditions an offer will be presented to you based on your health at the time of application. In some case premiums quoted at the time of the application are lower then what was first offered to the proposed insured once approved by the insurance company.
Navigating Insurance For You®
Navigators (though our affiliate Hallmark Financial Planning Inc.) provides the life insurance solutions that are the best-in-class service for protecting you and your loved ones in the event of the unthinkable. Life Insurance helps give your family financial security should something happen to you. Because each individual is unique, we are determined to get to know you and your family. This way, we can provide the best solution that fits your personal needs. It all depends on your personal situation and what financial obligations you would like to cover in the event of your death. A good life insurance policy can help cover:
- Medical bills
- Mortgage payout
- Funeral expenses
- Living expenses
The two main issues that you need to understand are simply: the cost of the premium and the death benefit. That is to say, what will your family receive in the event of your death. You may find that the death benefit remains constant across all the options and products available. You would think then that the only concern would be the amount of your premium. However, in the event of an illness or accident, there’s more at stake.
Talk to a Navigators Insurance Broker and find out how you can get peace of mind knowing your family will be taken care of no matter what the future may bring.