What is Life Insurance?
Death and disability are out of your control. We are here to help you protect your family’s future with life insurance. We’ve guided thousands of clients to help ensure they protect those most important to them.
Life insurance provides a lump sum (usually tax-free) benefit amount to replace lost income after you pass away. This coverage offers affordable financial protection and peace of mind to people whose friends or family rely on them.
The money from a life insurance policy can be used to pay expenses like a mortgage, utility and grocery bills, children’s college tuition, funeral arrangements, and more.
Hard-working families want peace of mind knowing their loved ones are protected in the case of an unexpected death. That’s why you need adequate coverage that you can afford. The problem is you may not always be around to provide, which can be a bit unsettling. We’re here to help find the coverage you need to care for your family.
How To Get Life Insurance
Every person is different. We work hard to find the right coverage for you and your family.Book a Consultation
Get to Know Each Other
We guide our clients through a concise and thorough process to determine what policy is right for you.
Find Your Policy
We work with 7 carriers to seek out the best options for our client’s needs.
Our dedicated support team will guide you through the application process and help you obtain coverage.
Who Needs Life Insurance?
There are many reasons to get life insurance. A general rule of thumb is to ask yourself this question: does anyone depend on your income to live? If the answer is yes, then you should consider life insurance.
If you have children, a spouse, or someone else you take care of financially, life insurance is a means of protecting those individuals and their financial needs if you were to die. It would ensure their mortgage is still getting paid, your child’s college tuition is taken care of, funeral expenses are covered, and more.
Types of Coverage
There are many varieties of life insurance that you can choose based on your needs. There are four types that are most common:
- Term Life Insurance
- Whole Life Insurance
- Universal Life Insurance
- Disability Insurance
Let’s dive into each one.
1. Term Life Insurance
Term life insurance lasts for a specific period of time- hence the word term. This type may be the right choice for anyone who wants affordable coverage with the option to transition to a permanent policy in the future. Term policies can last anywhere from 10 to 30 years before expiring. If you were to pass away before the term is up, your beneficiary receives a death benefit as a tax-free lump sum of money that can be used for funeral costs, paying bills, or something else.
2. Whole Life Insurance
It may be self-explanatory but just in case it’s not, whole life insurance is a permanent policy that lasts your whole life. There are four primary parts to a whole life policy:
- The death benefit is a tax-free chunk of cash paid out by the life insurance company if you die. For example, let’s say you buy a whole life insurance policy with $700,000 in coverage. That $700,000 is called the death benefit.
- A beneficiary is the person (or people) that you decide upon who will receive the death benefit.
- You pay a fixed premium for the entire length of your policy, meaning your required premium payments will never go up.
- The cash value is one of the main reasons people choose a whole life insurance policy because it accrues interest over time and can be accessed while you’re alive.
3. Universal Life Insurance
This is another type of permanent life insurance – like whole life – with coverage that lasts a lifetime and builds actual cash value. This means policyholders may be allowed to use the policy’s cash value to pay for premiums. With universal life, the interest rate earned on the cash value is subject to change over time. A benefit of a universal life policy is the flexibility to raise or lower premium payments within certain limits, so it may end up costing you less than whole life coverage.
4. Disability Insurance
If you cannot work, it’s hard to produce income. Disability insurance steps in to protect your paycheck so that you can pay your bills in the event of sickness, injury, or a major health event that causes you not to be able to work.
The difference between short-term and long-term disability insurance:
- Short-term: This will last for a shorter period, usually starting at a few months and no longer than a year.
- Long-term: This type can last up until your retirement. Note that your long-term disability insurance will not begin until any short-term disability benefits have been exhausted.
- Can I buy more than one life insurance policy?
Yes! Most people we work with have a large term policy with a small permanent policy to accomplish different goals.
For more information, call 757-448-3820 or book a consultation today.
- Should I buy life insurance that requires no medical questions?
No medical questions mean that carriers want to offer you little to no coverage. They will generally offer you up to $25k in coverage once the policy has been in force for two years. Our agents have the experience to know when you would require full underwriting or limited underwriting polices.
- How much life insurance do I want?
- Should I Buy Additional Life Insurance on Top of the Coverage Provided by My Employer?
Yes! Your employer’s coverage is typically 1x-2x your base income. Very rarely is this enough to take care of a mortgage, final expenses, and one year of income replacement. It’s important to have a coverage layer on top of your employer sponsored coverage. Additionally, when you retire or leave the company, you cannot take the coverage with you.
- How can I save money when buying life insurance?
There are a few ways you can save money when buying life insurance. A general rule of thumb is to purchase young to lock in the lowest rates, so you don’t end up paying hefty premiums in the future.
Speak with our Life Insurance team to discuss your needs so we can find the best rates for you.
“I was looking for a replacement life insurance policy. I am pleased with the options, and I am in the process of getting new life insurance policy through Prosper. All options have been explained extremely well, and the application process was straightforward.”
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