June 3, 2019
Many people do not have life insurance simply because they haven’t taken the time to understand the helpful benefits and coverage options. The research process doesn’t have to be difficult or time-consuming. We’ve answered a handful of the most common questions people have but are afraid to ask about life insurance to help you become better informed on why it’s so important to have.
Q: How Much Does Life Insurance Cost?
A: The price you pay for life insurance depends largely on personal risk factors. If you are young and healthy, your risk of dying is considered low, and life insurance will likely be inexpensive. The type of policy you choose, length of policy, and coverage amount desired will contribute to costs as well. The risk factors that your insurance agent will look at to determine a more accurate premium are:
- Current health conditions
- Medical history
- Alcohol/nicotine use
- Hazardous activities/pastimes
Q: Is My Employer-Provided Life Insurance Policy Sufficient?
A: Group policies offered by your employer give you an easy and affordable way to enroll in life insurance, but they often only pay an amount similar to your yearly salary for one to two years. Having a personal policy to supplement the one provided by your employer can help you to ensure you have enough to cover all of the needs of your family.
Q: What Are the Different Types of Life Insurance?
A: The two distinct types of life insurance are term and permanent.
Term – These policies have guaranteed level premiums and are offered in fixed periods of 10, 20, or 30 years.
Permanent – These policies are meant to provide coverage for your entire life, or until you cease payment on premiums. There are two variations of permanent life insurance:
Whole Life – Policy premiums do not rise, help build cash value that can be borrowed against
Universal – Size-adjustable premium payments and death benefits
Q: What Are Death Benefits?
A: Death benefits are payouts to the beneficiary of your life insurance policy. Benefits can be paid out in a lump sum, monthly payments, or even an individual retirement account (IRA). The purpose of death benefits is for you to ensure you can financially care for those who depend on you after your death.
Q: What is a Cost-Effective Way to Get the Life Insurance I Desire?
A: Many insurers offer discounts for people who bundle insurance policies like life, home, and auto. Since age is a large factor in determining life insurance costs, there’s never a better time than right now to purchase a policy. The younger you are, the less you will pay, so talk to your local life insurance provider today to begin coverage!
Professional Life Insurance Resources in Maryland
American Heritage is an esteemed life insurance provider in Carroll County with over 35 years of experience in the industry. Our expert staff is dedicated to ensuring that all of our clients fully understand the intricacies and benefits of the insurance plans we offer and are more than ready to answer any additional questions about life insurance you may have. Contact us today!