Expert advice on life insurance.
Although life insurance is something that everyone should have, not everyone has it. You might not be able to afford it because you are young and healthy. Perhaps you have limited finances and can’t afford to purchase a policy. Perhaps you don’t know where or how to begin.
Five life insurance tips from Frankenmuth Insurance experts have been compiled to help you understand the importance of life insurance and how easy it is to get.
These five tips will help you decide how much life insurance coverage you need.
Tip 1 – Check into the coverage offered by your employer.
Are you and your spouse covered by a life insurance policy from your employer? Look closely to determine how much coverage you have. Employer-provided insurance typically covers two times an employee’s salary. This amount might not be enough to cover the cost of rebuilding after the death of a spouse, or other household member. What if child care costs rise? Is the mortgage manageable? These are just a few of the questions you should ask when considering supplementing your employer-provided insurance policy.
Our expert recommends that you have a policy that covers expenses for the future. A realistic policy coverage amount would be approximately 7-10 times your salary. Although this seems like a large sum to pay, a $500,000 term policy can be as low as $25 per month.
Tip 2 – Always put your loved ones first.
It can be difficult to think about, or talk about, the worst-case scenario of someone you love dying. Life insurance is there to protect your family and keep you from financial ruin in the event of a catastrophic situation. It can be one of your most thoughtful gifts to leave behind, as it is possible to have a difficult conversation ahead and set up a comprehensive policy for life insurance.
Tip 3 – Find the policy that is right for you.
There are two types of life insurance: Whole Life and Temporary. As the name suggests, whole life insurance covers an individual throughout their entire life. Term life on the other side offers protection for a limited time (10-20, or 30 years) and is often more affordable. A life insurance policy can be customized to suit any family’s financial and life stage by offering a variety of coverage options.
Tip 4 – Add life insurance to an existing policy.
Frankenmuth Insurance offers home and auto insurance. You might consider adding life insurance. You can save as much as 10% on your auto insurance and as much 5% on your home policy when you add it to your existing coverage.
Tip 5: Speak to an agent
A conversation is key to making an informed decision about purchasing life insurance. Frankenmuth Insurance agents can help you understand the policies and answer all your questions.
Family Life Insurance
Financial planning is complex and requires careful consideration. The list is endless, from insurance to retirement savings and ensuring the safety of your children. Family life insurance plans can help with many of these issues.
Life insurance has been viewed as a financial tool for only the breadwinner. This is a big myth. This tradition has been followed by many families over the years, only to discover that life insurance is an important financial tool for everyone in the family, regardless of income.
Family life insurance plays an important role in protecting the financial future of both the individual and their loved ones. These are the facts about family life insurance.
What Life Insurance Plan should you buy for your family?
The number of family members, your children and other savings and investment plans will all play a role in choosing the right life insurance policy. There are many options available. Here are the top three:
This is the most popular type of life insurance plan. Term insurance is a policy that has a predetermined premium. A term insurance plan allows you to choose the length of the term, the amount assured and the frequency of your premiums. The sum assured, also known as the death benefit, is paid to the loved ones in the event of the insured’s unfortunate passing during the term.
You can add riders to your term insurance policy for critical illnesses. These riders provide financial protection in the event of a critical illness, as well as coverage for hospitalization and diagnosis expenses.
Retirement / Pension Plans
You can save money for retirement insurance plans. These plans are similar to pension plans, but offer all the benefits of an insurance policy. A person can pay a premium to an insurance provider for retirement insurance. This could be in the form of a regular payment or a one-time payment. The nominee can claim this premium as a death benefit upon the insured’s death.
If an insured person survives the term, they may be eligible for benefits in the form either regular payments that can be used to supplement retirement income or a lump sum payment from their insurance company at the conclusion of the policy term. The retirement plan term is normally until the age of 60.
You get more than death benefits from retirement insurance plans. These plans can help you save for your retirement goals, and serve as a savings tool for the later stages of your life.
Insurance for children
Child insurance can help you secure your child’s financial future. Child insurance funds can be used for education, marriage, health, and other purposes. Parents, grandparents, and guardians can build funds in a child insurance policy by paying a regular or one-time premium until the child turns 18 years old. You have two options: you can claim the whole corpus, or you can opt for regular installments that can be used to provide for your child.
In the event of parents’ death, child insurance can be very useful for the children. These plans may provide financial assistance for children to help them pay for major life events such as marriage or education.