Life Insurance Tips - Part 1

 

1. Understand your needs. No one understands your financial situation better than you. You should always avoid being told what to do when it comes to purchasing life insurance. However, remaining open to advice of those you can trust, such as your friends at Funeral Dignity Life, is also a good idea. That being said, you can begin putting together a rough estimate of the coverage you'll need by adding together your debt, estimated funeral costs and six months - a year of income replacement. Understanding your financial situation is the first step in choosing the right life insurance for you.  
2. Understand term insurance versus permanent insurance. Remember, buy what you need and make adjustments as changes become necessary. Term insurance is typically renewable and should have a convertibility clause which allows you to make changes in the future. There are certain situations where a whole life policy maybe more advantageous than term; however, do not purchase it simply because your sales representative told you should - always remember to put your needs first.
3. Speak with someone you can trust. Everyone here at Funeral Dignity Life has your bests interests are heart and are ready to help you through this process at any time. 
4. Avoid one-meeting recommendations. If you meet with an agent who makes suggestions that you are unsure of it is okay to say “No, thank you” and keep researching.
5. Recognize that insurance is for protection — not investing. Term insurance provides protection only, without a savings component. Whole life and universal life policies have a savings component and are much more expensive. You are almost always better off just paying for term insurance, and using the cost savings to invest elsewhere.
6. Ask the tough questions. Don’t be afraid to ask the advisor questions. You should know the product inside out before buying it. Is the policy renewable and non-cancelable? How long are premiums guaranteed for? Is there an accidental death rider? What are the exclusions? The more you ask, the more knowledgeable you will be and the more likely you are to make the right decision for you. 

Remember, we are here to help you! Visit our website for more information. 


Source: GetRichSlowly

Life Insurance Myths - Part 2

Myth 5: My beneficiaries will have to pay income taxes on the proceeds from my life insurance policy.

Fact: Your life insurance death benefits are generally income tax free.


Myth 6: If I travel out of the country and something happens to me, I won't be covered.

Fact: In the unlikely even that you pass away while out of the country, your policy would most likely pay out to your beneficiaries. Some policies may exclude certain countries, like those on the US Department of State's Travel Warnings List, so you should make sure you are knowledgeable about your policy's restrictions prior to traveling.



Myth 7: If I get a term policy, I can't convert it to a permanent or whole policy.

Fact: It is possible to convert a term policy into a permanent policy, depending on the specific policy. If you choose to do so, expect to see an increase in premium. You may also find that you have certain limitations or the new policy will require renewals. 


Myth 8: I don't need life insurance once my children are grown up.

Fact: Like insurance can help you achieve your goal of leaving an inheritance to your children and loved ones. An insurance policy can also help to alleviate the burden of final costs such as funeral arrangements or medical bills. 


Myth 9: I have a comfortable savings, so I don't need life insurance.

Fact: It is very easy to underestimate the amount of savings you'll need in the event of death. Most Americans do not have enough in their savings accounts to cover the expenses of that event. If you don't have enough saved and you don't have a life insurance policy, you may leave the burden of expenses on your loved ones.

For more information, visit our website!


Source: AllState

Life Insurance Myths - Part 1

Myth 1: I'm single or married with no children, so I don't need life insurance.

Fact: Life insurance can help you cover your debts and help you provide for your loved ones in the event of death, even if you have no children.


Myth 2: I can't afford life insurance.

Fact: Term Life Insurance (which is life insurance purchased for a period of time) is typically affordable for many people. You may even be able to purchase a policy for less per month than the cost of going to the movies once.


Myth 3: I'm a stay-at-home parent. I have no income. I don't need life insurance.

Fact: If you're a stay-at-home parent, you may not have an actual income but you do provide services that would otherwise cost money - daycare, house cleaning, cooking, etc. Should you pass away, these services may need to be purchased and can cost your family thousands of dollars.



Myth 4: I have a policy through my job. If I take another job or get laid off, I'll just take this policy with me.

Fact: Typically, life insurance provided through your job is not transferable. If you leave that job, you may also be leaving your life insurance policy.



For more information on life insurance and the myths and facts that come with it, contact us at Funeral Dignity Life.


Source: Allstate

What Can We Do For You?

We are independent agents working with several insurance carriers offering the most affordable life insurance in the market place. From ages 0-85, we can insure you or your family with any type of health related illness.

That means anyone with diabetes, heart conditions, obesity, high blood pressure, cancer, etc, can qualify for immediate life insurance (most of the time, day one coverage) coverage without having to take a blood or urine test.

You can visit our website or call us locally at 305-918-2962.

Let us help you to prepare for the rest of your life!