Life Insurance Tips - Part 2

 

1. Compare similar products. When you price shop, make sure you compare similar products. Researching prices on policies and options that are very different won't really give you a clear pictures of your possibilities.
2. Don’t replace old whole-life policies. If you have had a whole-life policy for several years, try not to replace it. You may lose all the premiums you have paid. You may also have to pay new administration fees (if applicable), and reset some clauses (such as the suicide clause). If your situation has changed and you need more insurance, just buy more. (This warning does not apply to term life.)
3. Do not buy expensive riders. Stay away from them unless you fully understand them and need them. Purchasing options and riders you do not understand could result in expenses and situations you are not prepared for.
4. Do your homework. Make sure you do your homework before purchasing an insurance product. Make sure it fits your needs and budget, and make sure you understand the contract. Ask as many questions as you can and get a full understanding of your policy before signing any documents.
5. Keep it simple. Do not make your insurance planning complicated. Because it is based on protecting your family, it should be based on your needs. While options and add-ons may seem beneficial, only do what you need!

Visit our website for more information and contact us when you're ready to move forward with this step. We're here to help!


Source: GetRichSlowly

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!

Retirees May Need More Life Insurance

If you died today, your spouse would still be faced with daily living expenses - for 10, 20, or even 30 years. Without life insurance, would he or she be able to pay off your obligations, maintain the lifestyle you have both worked so hard to achieve, and pass on something to your children and grandchildren?

For example, depending on the size of your estate, your heirs could be hit with a large estate tax bill after you die - up to 45% of your non-exempt estate, or more, depending on your State's inheritance taxes. Enter life insurance. Life insurance proceeds are generally free of income tax, and can be set up so they avoid probate. As a result, your life insurance policy can potentially pay out immediately upon your death, allowing your heirs to pay those estate taxes, as well as funeral costs and other debts, without having to liquidate other assets. And if your life insurance policy is properly structured, the proceeds from it will not add to your estate tax liability.

Moreover, if your circumstances change and you no longer have anyone who would need the proceeds of a life insurance policy, your may be able to surrender the policy and supplement your retirment income with the funds that have accumulated in the policy's "cash value account."

So, how much life insurance do you need as a retiree? That depends on how much your family will need to meet general obligations upon your death (such as medical costs, funeral expenses, and estate settlement bills) as well as how much future income your family will need to sustain them. The latter is tricky to calculate, because it invovles calculating the present day value of future needed cash flow streams.

For more information, contact us at Funeral Dignity Life.

Whole versus Term Life Insurance: A Comparison

Whether or not they own it, most people agree that you should have life insurance. However, it isn't always easy to know what company to buy from or what type of insurance to buy. Companies that only sell term life tend to imply that purchasing whole life is at best unnecessary and at worst a scam. Companies that prefer to sell whole life are more likely to caution you about having insurance that can expire and be too expensive in later years to replace. The truth is, while life insurance should be regarded as a necessity, it is true that purchasing a policy that does not meet your expectations can ultimately seem like a major mistake. Hopefully this comparison of Term vs Whole life will help you determine what you need in a life insurance policy.

Term Life

Term life insurance is a policy that will provide a benefit if you should die in the period of time provided by the "term." At the end of the period, the premium— should you decide to renew, goes up sharply and increases annually for another 10 or 15 years after which it expires.

Whole Life

Whole life, as it sounds, is for your entire life. Variations abound, which may have increasing premiums or waiting periods, but the standard "guaranteed whole life" will have level premiums, a level death benefit, and will build cash value. Premiums are reasonable if purchased while you are young.

Advantages:

Term life is cheap even in high face values. If you are young it is possible to get a policy that will last 30 years. Riders such as spouse riders and disability riders are available. While the policy itself is not really designed to be renewed—the renewal premiums are very high—it can be converted to any other policy offered by that company without medical underwriting. Thus, if you decide in later life that you don't need the large term policy, you can simply convert it to a much smaller whole life without worrying about answering a lot of health questions.

Whole Life will never need replacing. High cash values are available if you meet the underwriting requirements. You can purchase additional riders, and because it builds cash value, you can borrow against it. You can also cash surrender it if you decide later in life that you don't need it. The benefit can be turned into a cash stream by your beneficiary rather than being paid in a lump sum. Also, the policy, if you live long enough, will eventually endow— meaning the face value and cash value will be equal, at which point the company will give you a check upon request.

Disadvantages:

While the initial cost is low, the rates for a whole life in your later years will be much higher. Thus, it is important to know what type you need.

A term life has no cash value, thus no loan option. An unrecognized consequence is that, since there is no cash to keep the policy going, it will lapse within 30 days if you miss a payment. A whole life, in contrast, can be set up for an "automatic premium loan" if you should miss your payment.

The primary disadvantage of a whole life is the cost. Premiums are very reasonable for younger buyers but are much higher than Term Life. Due to the higher cost, people often make the mistake of only purchasing enough for burial.

Loans are available, but the interest must be paid yearly. If you borrow against a whole life and do not pay the interest, the policy will eventually lapse for loan insufficiency. You should not purchase the policy solely for a source of loans.

For more information, contact us at Funeral Dignity Life.