Protect Your Loved Ones with Life Insurance

Life insurance can often be something you don’t want to think about, but it is necessary. Think about your loved ones for a second. You want to protect them in case something were to happen, don’t you? Life insurance is one way to ensure your family’s financial security if you were to pass away. Life insurance can help your spouse pay off the mortgage, or pay for your child’s college tuition. 

At Allstate Insurance - Kyer Agency, we know that purchasing life insurance can be a huge and stressful decision, and it’s important to choose a policy that best fits your family’s needs. Before you make your decision, you’ll want to understand the difference between the two types of life insurance. You will also want to take the time and go over how much coverage you think you will need. Finally, you’ll need to know how to go about buying life insurance. 

Term vs. Permanent

There are two types of life insurance that you can purchase, term and permanent. Term life insurance is typically more affordable and lasts for a set period of time, usually 10-30 years. Term life insurance is much like your car or home insurance. Each year you have a premium that you pay. For example, you might choose a $1 million 20-year plan. You would then pay $500 each year. Permanent life insurance, on the other hand, offers lifelong coverage, as long as you pay premiums each year. 

When it comes to deciding what kind of life insurance to get, you need to assess what it is that you want from the policy. This will help you weigh the goals and costs of each policy. If you are looking for a policy that will just help you cover the mortgage or your child’s college tuition once your spouse passes away, a term life insurance policy will be best for you. If you don’t mind paying a little more and are looking to earn a little return on your investment, permanent life insurance is the way to go for you.  

How Much Coverage do I Need? 

Along with deciding what kind of policy you want, you need to determine how much coverage you’ll need. There are several factors to consider when making a decision, but it’s always a good idea to start with your final expenses. Final expenses, for example, are the cost of the funeral. 

Did you know, in the United States, an average funeral costs anywhere between $7,000- $10,000? Life insurance can help you pay for those expenses. Next, you’ll want to consider these factors when deciding how much coverage you need. 

• Income

• Age

• Existing debt

• Current expenses

• Future expenses

Taking these factors into consideration will help you get a sense of how much coverage you’ll need. You do not just want to pick a random number and go with that. You want to seriously think about, okay how much money will my spouse be down each year if I pass away? How much more do we have to pay on our mortgage? How much is it going to cost for child care, or to send our children to college? These are all questions you want to make sure you and your spouse are asking each other when deciding how much coverage you will need to purchase.  

How do I Buy Life Insurance? 

Now that you know the difference in types of life insurance, and know how much coverage you will need, it is time to get a quick quote and pick a policy. Once you have picked a policy, you must provide a few documents. These documents include proof of identity, citizenship, age, income, and residency. Having these documents ready beforehand will help make the process go more smoothly. After you get a quote and pick a policy, you must fill out an application. This may take a little longer than the quote and go into a little more depth. Once you have the application filled out, you will need to get a medical examination. This will be much like a normal check-up, except the medical examiner will come to your home. The purpose of the examination is to just get an in-person view of your health. After that, the hard part is over, and all you have to do is wait for the underwriter’s approval. All they are doing is checking to see if you will get the rate that you were quoted for. Once you get approved you sign the documents and pay for your policy. 

We know that life insurance sounds like a stressful decision, but it is necessary to secure your family’s financial stability if something were to happen to you. If you have any more questions or would like to get a quote today, give Allstate Insurance - Kyer Agency a call at 706-226-5240 or visit our website today. 

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Sources

https://www.allstate.com/tr/life-insurance/first-time-life-insurance.aspx

https://www.parting.com/blog/funeral-costs-how-much-does-an-average-funeral-cost/

https://smartasset.com/life-insurance/5-mistakes-to-avoid-when-buying-life-insurance

https://www.policygenius.com/life-insurance/how-to-buy-life-insurance/