Protect your loved ones with Life Insurance. Having a new born child? Adopting a baby? Buying a home? You need life insurance.
Life Insurance is an important component to your insurance protection plan. If others depend on your income you need life insurance.
How much is your life worth and how much life insurance do you need?
The exact amount of life insurance needed depends on your individual objectives. What are you trying to accomplish with your life insurance protection plan? Areas life insurance can help protect
- Income replacement for a spouse
- Mortgage protection insurance
- College funding for a child
- Tax Planning
- Transfer of Wealth
- Retirement Funding
Think about this. How much might you earn between now and retirement? What are your monthly expenses? If you were to pass away suddenly how would that impact your significant other? Life Insurance provides comfort knowing your spouse and family will be taken care of in the event something happens to you.
How much does life insurance cost?
It can be remarkably inexpensive depending on when you take action to buy and what type of life insurance protection you are looking for. The younger you are usually the cheaper it will be. Life Insurance generally is split into types.
Term Insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Most term policies have no other benefit provisions.
- Level term means that the death benefit stays the same throughout the duration of the policy.
- Decreasing term means that the death benefit drops, usually in one-year increments, over the course of the policy’s term.
In 2003, virtually all (97 percent) of the term life insurance bought was level term.
Whole life or permanent insurance pays a death benefit whenever you die—even if you live to 100! There are three major types of whole life or permanent life insurance—traditional whole life, universal life, and variable universal life, and there are variations within each type.
In the case of traditional whole life, both the death benefit and the premium are designed to stay the same (level) throughout the life of the policy. The cost per $1,000 of benefit increases as the insured person ages, and it obviously gets very high when the insured lives to 80 and beyond.
The insurance company could charge a premium that increases each year, but that would make it very hard for most people to afford life insurance at advanced ages. So, the company keeps the premium level by charging a premium that, in the early years, is higher than what’s needed to pay claims, investing that money, and then using it to supplement the level premium to help pay the cost of life insurance for older people.
By law, when these “over payments” reach a certain amount, they must be available to the policy owner as a cash value if he or she decides not to continue with the original plan. The cash value is an alternative, not an additional, benefit under the policy.
In the 1970s and 1980s, life insurance companies introduced two variations on the traditional whole life product—universal life insurance and variable universal life insurance.
If you are confused about your life insurance options and you live in Maryland, Pennsylvania, Delaware or Virginia, contact us at Crawford Yingling Insurance. What you select depends on your life stage, budget and commitments. No one wants to think about dying and that is understandable, we can make the process comfortable for you and your family. Bottom line, we have been providing financial protection to families since 1919 and are ready to help you.
Two Great Reasons to get a Life Insurance quote now
- Maryland Life Insurance quotes take less than 10 minutes
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