What is life insurance?
We understand that death is emotionally devastating. Beyond just losing a loved one, it may lead to uncertainty about your financial security. Without the deceased income, things such as mortgage or providing for college may be more difficult.
It is for this reason that life insurance can help take care of you financially. Life insurance is a promise by the insurance company to pay your dependents a specific sum of money following your death. In return, you will make payments to the company called premiums. Determining factors for premiums include age, gender, medical history, and the amount of life insurance you purchase.
Why do I need Life Insurance?
Should you pass, life insurance will provide money to your beneficiary and dependents who can use money as they see fit. Some of these uses may include:
- Replacing loss income
- Paying hospital bills and funeral expenses
- Maintain living expenses
- Covering mortgage costs
- Providing money for college tuition
What are the benefits of life insurance?
- Cash Back Options – You will receive ALL your money back if you never should use your life insurance policy.
- Guardian Benefit – Your children’s guardian will receive $900 per child until they turn 18 years old.
- Tuition Benefit – Each child will receive up to $6,000 per year (max 4 years) for education and maintenance costs.
- Emergency Assistance Programs – Emergency grants are available to provide short term, temporary financial assistance to members affected by significant personal hardship, disaster or large-scale emergency.
- Competitive Scholarships – Students under 24 years old who hold a 2.8 GPA can compete for a scholarship.
- Terminal Illness Loan – When certainty of death is within 12 months, life insurance policy holders can withdraw 75% of their policy’s face amount in advance to help pay bills or get their financial obligations in order.
- Community Grants – Community Grants program provides members with financial grants to organize volunteer and fun family activities within their communities.
- Legal Link – Legal Link provides access to complimentary and discounted legal services in a member’s area. Members can connect with lawyers for help with a variety of issues including wills, home ownership and family law.
Don’t forget to ask about the free built-in bonus for your children’s guardians. They will receive an additional (No Charge) $900 a month per child until they reach 18 years old and $24,000 for tuition (split into four years) for each child.
What types of life insurance are there?
There are two main types of life insurance which are term and permanent insurance.
Term life insurance is for a specific period. This insurance is most commonly used to cover a certain period when you have the most debt so your loved ones are not left worrying about paying the bills. The term periods selection can range from 10, 15, 20, 25, and 30 years.
Permanent life insurance is protection for your whole life. This insurance does not expire and the rates will never change because of your health condition.
What life insurance coverage do I need?
May not be possible to determine the exact amount right now, but we can make an educated guess. The goal is to create a life insurance plan that will allow your family to maintain their lifestyle without your income. You will also need to keep in mind the effect of inflation. To develop an estimate, consider things you provide for your family such as, income, benefits – health insurance, retirement savings, and personal services. You will also want to subtract yearly expenses.
How much does life insurance cost?
Life insurance may be more affordable than you think. The cost of life insurance increases as you get order and the type of coverage that you select effects the premium. Term insurance is commonly less expensive than permanent whole life insurance.
Click to learn more about Permanent Life Insurance plans, or Term Life Insurance plans:
Ridgeway Protection Insurance serves the Acadiana area around Lafayette, Opelousas, Carencro, New Iberia, and Cecilia. Ridgeway Protection Insurance offers unparalleled service and competitive quotes to clients throughout the entire State of Louisiana![/su_column][/su_row]