Life insurance is an important step in planning for you and your family’s future. Proceeds can provide both financial security for your loved ones and peace of mind for yourself. Life insurance is income tax free and can be used to cover funeral expenses, repay debt, pay the mortgage, maintain your family’s current standard of living, provide education, pay estate taxes or any other expenses that may incur. It may also be used to help ensure that a family business is given to the intended survivor.
Types of Life Insurance
There are various types of Life Insurance plans targeted to meet individual needs:
Term Life Insurance – These policies usually offer the greatest amount of coverage for the lowest cost. If you have limited money to spend on life insurance and shorter-term needs, Term Life may be the best fit for you. Term insurance covers you for a term of one or more years. It pays a death benefit only if you die in that term. Term insurance generally offers the largest insurance protection for your premium dollar and doesn’t not build up cash value.
Whole Life Insurance – These policies are one of the most common types of permanent life insurance. The cash value of these policies accumulates at a guaranteed interest rate and typically the policy owner may borrow against the cash value.
Universal Life Insurance – These policies are designed to help you meet your current and future life insurance needs. It offers income tax-deferred cash accumulation that earns a competitive interest rate to help you reach your financial goals.
Please contact us for details and prices at (812) 265-6166or email email@example.com.
Life Insurance FAQs:
Q. How much life insurance do I need?
A. You need enough to take care of your dependents if you should die. At Gardner Insurance we can help you go through the calculations that will give you a good estimate on how much you may need to cover your family.
Q. Who can take out a policy on my life?
A. Only someone who has an “insurable interest” can purchase an insurance policy on your life. That means a stranger cannot buy a policy to insure your life. People with an insurable interest generally include members of your immediate family. In some circumstances your employer or business partner might also have an insurable interest.
Q. Why is term life often called “temporary” insurance?
A. Insurance agents sometimes refer to term insurance as “temporary” because the term policy lasts only for a specific period. It is probably no more “temporary” than your auto or homeowner insurance. Just like term, those types of policies provide coverage for a specific period of time, and must be renewed when that period ends.
Q. How does mortgage protection term insurance differ from other types of term life insurance?
A. The face amount under mortgage protection term insurance decreases over time, consistent with the projected annual decreases in the outstanding balance of a mortgage loan. Mortgage protection policies are generally available to cover a range of mortgage repayment periods.
Please contact us so we can help you select the best policy for you, and help calculate how much you may need for you and your family. (812) 265-6166 or email firstname.lastname@example.org.
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Life Insurance Terminology:
Accelerated Benefits Rider
A life insurance rider that allows for the early payment of some portion of the policy’s face amount should the insured suffer from a terminal illness or injury.
Accidental Death and Dismemberment
Insurance providing payment if the insured’s death results from an accident, if the insured accidentally severs a limb above the wrist or ankle joints, or if the insured irreversibly loses his or her eyesight.
Accidental Death Benefit Rider
A life insurance policy rider providing for payment of an additional benefit related to the face amount of the base policy when death occurs by accidental means.
Annually Renewable Term
A form of renewable term insurance that provides coverage for one year and allows the policy owner to renew his or her coverage each year, without evidence of ability to insure.
Person to whom the proceeds of a life policy are payable when the insured dies. The various types of beneficiaries are: primary beneficiaries (those first entitled to proceeds); secondary beneficiaries (those entitled to proceeds if no primary beneficiary is living when the insured dies); and tertiary beneficiaries (those entitled to proceeds if no primary or secondary beneficiaries are alive when the insured dies).
Given to policy owners when they pay a premium at the time of application. Interim coverage during the underwriting process is provided subject to terms and conditions of the receipt.
Person or persons named to receive proceeds in case the original beneficiary is not alive. Also referred to as a secondary or tertiary beneficiary.
Allows the policy-owner, before an original insurance policy expires, to elect to have a new policy issued that will continue the insurance coverage. Conversion may be effected at attained age (premiums based on the age attained at time of conversion) or at original age (premiums based on age at time of original issue).
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Contract that may be converted to a permanent form of insurance without medical examination.
Decreasing Term Insurance
Term life insurance on which the face value slowly decreases in scheduled steps from the date the policy comes into force to the date the policy expires, while the premium remains level. The intervals between decreases are usually monthly or annually.
Disability Income Rider
A type of health insurance coverage that provides for the payment of regular or periodic income should the insured become disabled from illness or injury.
Increasing Term Insurance
Term life insurance in which the death benefit increases periodically over the policy’s term. Usually purchased as a cost of living rider to a whole life policy.
Level Term Insurance
Term coverage on which the face value and premiums remain unchanged from the date the policy comes into force to the date the policy expires.
Typically, the medical examination is conducted by a licensed paramedical professional. The medical report is part of the application process, becomes part of the policy contract, and is attached to the policy. A “non-medical” is a short-form medical report filled out by the life insurance agent. Various company rules, such as amount of insurance applied for or already in force; applicant’s age, sex, past physical history; data revealed by inspection report, etc., determine whether the application will be accepted on a “medical” or “non-medical.” basis.
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Other Insured Rider
A term rider covering an eligible family member or business member other than the insured that is attached to the base policy covering the insured.
A risk whose physical condition, occupation, mode of living and other characteristics indicate a prospect for longevity superior to that of the average longevity of unimpaired lives of the same age.
The beneficiary designated by the insured as the first to receive the policy benefits.
Refers to any supplemental agreement attached to and made a part of the policy, whether the policy’s conditions are expanded and additional coverage is added, or a coverage or condition is waived.
An alternate beneficiary designated to receive payment, usually in the event the original beneficiary predeceases the insured.
Insurers will give a lower premium rate to consumers who do not smoke or use tobacco. If you have smoked in the past, most carriers will consider you a non-smoker, if you have not smoked for one year prior to applying for coverage.
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A person who, according to a company’s underwriting standards, is entitled to insurance protection without extra rating or special restrictions.
A person who is considered an under-average or impaired insurance risk because of physical condition, family or personal history of disease, occupation, residence in unhealthy climate or dangerous habits.
Most life insurance policies provide that if the insured commits suicide within a specified period, usually two years, after the issue date, the company’s liability will be limited to a return of premiums paid.
Term of Policy
Period for which the policy runs. In life insurance, this is to the end of the term period for term insurance.
Company receiving premiums and accepting responsibility for fulfilling the policy contract. Also, company employee who decides whether the company should assume a particular risk; or the agent who sells the policy.
Individual not acceptable for insurance due to excessive risk.
Waiver of Premium
Rider or provision included in most life insurance policies exempting the insured from paying premiums after insured has been disabled for a specified period of time, usually six months.
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