Life Insurance Protection and Peace of Mind

Your Life Insurance

If others depend on you for financial support, part of your financial plan should include how you will provide for them in the event of your death. Don’t put it off. The longer you wait will cost you more, much more if you have a health issue between now and then. Even worse – you never get around to it and everyone says what a shame at the funeral. Purchasing a life insurance policy is a safety net that ensures your loved one’s future financial obligations are met, covering items such as funeral costs, outstanding debt, estate taxes and everyday living expenses.

If you are married, it’s important for both spouses to have a life insurance policy. If both people bring in an income, a death can be a difficult financial loss. Also, if a stay-at-home parent should pass away, expenses such as childcare and other domestic items can create financial hardship, too.

There are two basic types of life insurance: term life insurance and permanent life insurance. The type of life insurance policy that best suits you will depend on your unique needs. To help you decide, we’ve covered the basics.

Option #1: Term Life Insurance

Just as its name implies, term life insurance covers you for a specific period of time, or term, that you choose. Since it offers a death benefit but no cash value, term life insurance is an inexpensive way to protect your beneficiaries for a specified period of time.
It is ideal for those who have a temporary need for life insurance protection, for those who need a large amount of insurance protection but have limited cash or for those with specific business needs, such as additional coverage for a key employee.
Renewal term life insurance can be renewed at the end of the term, at the option of the policyholder and without evidence of insurability, for a limited number of successive terms. It can also be converted, or exchanged for a permanent insurance policy, without evidence of insurability down the road.
With term life insurance, once the term expires, your coverage ceases and the policy has no further value. It’s important to note that rates generally increase along with the insured’s age.

Option #2: Whole Life Insurance

Permanent life insurance is any form of life insurance other than term. Examples are whole life, universal life and variable life. These policies combine term life insurance with a long-term, tax-sheltered savings plan.
Whole life is the most basic type of permanent life insurance. It provides coverage that lasts a lifetime and also builds up a cash value that you can borrow against, withdraw or use to pay future premiums.
A life insurance policy with a cash value is ideal for those who have a lifetime need for insurance protection, prefer stable premiums over the life of the policy, want a policy that allows them to build tax-deferred values, and value the high degree of coverage the policy affords. While rates for a whole life insurance policy remain stable over the life of the policy, premiums are initially more costly than for term insurance.
Regardless of whether you choose a term or permanent life insurance policy, both can afford protection and peace of mind knowing you have the coverage when you need it most. Call us today at 612.460.7796 to learn more.

 

 How much Life Insurance do I Need?
Good question! To find the right amount of coverage, it’s important to weigh your dependents’ current lifestyle and spending needs against their future sources of income and assets. Based on some basic financial information, such as your current annual gross salary, the number of years until retirement, and your short-term and long-term expenses, we can help you figure out how much your family will need to replace this lost income over this length of time should something happen to you.

Even if you already have life insurance through your employer, you may be underinsured. If you’d like the security of knowing that you have enough life insurance coverage in place, we can work with you to ensure that there aren’t any gaps in your current coverage. Don’t Wait! 612.460.7796

Life Insurance Costs for Smokers

Everyone knows – especially smokers – that cigarettes are expensive.  Below is an info graphic showing the cost of life insurance for smokers vs. non smokers.  Smokers die 10 years earlier and may really have a need life insurance.

Life Insurance QuotesAre you considered a smoker?

 

In the life insurance world, you’re considered a smoker if you answer “yes” to the smoking question on your insurance application. If you’re asked if you’ve used tobacco products, including cigarettes, cigars, and chewing tobacco, within a specified time frame – and you have – your answer should be yes. If you enjoy a good cigar from time to time or smoke just two cigarettes per year, you are considered a smoker. Occasional cigarette smokers and just a cigar once in a while are still considered smokers.

Are E cigarettes or” vaping” considered smoking?

National (life) underwriters , say as long as there is nicotine delivery, they’re going to keep the same stance, There is only one major life carrier that doesn’t – Prudential will allow nonsmoker rates for e-cigarette use.

There is still a lot of discussion and research going on in regards to E cigarettes and impact on health isn’t totally clear. However, it’s still an addiction and a cost. For that reason alone it doesn’t make much sense. Regardless of what E cig manufacturers and outlets biased and counter arguments are – there doesn’t seem to many positive benefits.

If you’re in excellent health and haven’t smoked in five years because that reduces your chances of dying sooner. Being just “normally healthy” requires that you haven’t used nicotine in the past three years and still gets you lower premiums. A standard rate requires that you have not used nicotine within the past year.

If you’d like to get a life insurance quote – click the button below and quickly fill out the form below to view policies & rates from the nations top Life Insurance providers or call 612.460.7796 and speak with a life insurance specialist.

Life Insurance Quotes

Do I Need a Personal Umbrella Policy?

Most people – whether they need one or not – are unsure what a personal umbrella policy is or what it covers. We will  offer a brief explanation of a personal umbrella policy and how it may benefit and protect you financially.

Umbrella insurance Minneapolis

When you’re outside and there is a light rain or breeze you generally don’t need or want an umbrella. However, if it is pouring heavy rain with severe winds, you definitely take your umbrella or wish you had taken it. An umbrella insurance policy works much the same way.
Personal umbrella insurance provides extra protection or limits above the liability insurance you currently have. Just as an umbrella protects you from heavy rain, an umbrella insurance policy protects you from losing the entirety of your wealth and assets in the event of a claim. Umbrella insurance can provide limits above your personal auto and home policies.

Most insurers will require a minimum of 250/500 or 300 combined single limit or a $500,000 single limit.  The umbrella will be cover above those limits.  Most often if you can purchase from your current insurer an umbrella is very affordable

Here is an example: Jane Doe – Smith falls asleep while driving and hits a van with a family inside. The accident results in $600,000 of medical bills, but Jane Doe – Smith’s auto policy has a $500,000 limit. Fortunately, She also has a $500,000 umbrella policy, and the additional $100,000 would be covered under the umbrella policy
It’s true that a personal umbrella may not be for everyone, but if you’re building financial resources for your future, are a professional, own your home, boat or recreation vehicle, you should consider an umbrella insurance policy. Having assets to lose makes you a target for attorneys and lawsuits – unfortunately.  The added protection of an umbrella insurance policy is coverage no one should go without.

You should review your insurance periodically to ensure there are no gaps and that you are properly protected if something should happen.  It doesn’t make sense to work hard all your life to have it taken away by some unfortunate circumstance.  A solid financial plan should begin with an insurance review.
Umbrella insurance is generally very affordable – probably around $100-300 a year avg.

Please call the Minneapolis Insurance Team and allow us to give you a quote! 612.460.7796