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FAQ
Frequently Asked Questions
How much Insurance do I need?
A good rule of thumb is that your need for family protection is about 7 to 10 times your annual earnings. For an estimate fill out this form and total ASSETS (Liquid) Current Life Insurance $_______________ Savings(Checking acct, CD's) $_______________ Investments(stocks,mutual funds, other) $_______________ Real Estate $_______________ Personal Assets $_______________ Any other Assests $_______________ TOTAL ASSETS $_______________ CASH ASSETS $_______________ Burial Expenses($5-10K) $_______________ Debts(Credit cards,auto,personal) $_______________ Mortgage Balance(or 10yrs. rent) $_______________ Child Care($___/yr.for___yrs.) $_______________ Spouses Income Needs($_______for_____yrs.) $_______________ College Fund($______per child for 4 yrs.) $______________ TOTAL CASH NEEDS $______________ Subtract Cash Needs from Assets $______________ This will provide a reasonable estimate of your life insurance needs.
What is the difference between Term life insurance plans , Whole life insurance plans, and Universal life Insurance plans? TERM LIFE insurance plans have no frills insurance providing only a Death Benefit. It provides the lowest current cost for insurance coverage. The price increases as you get older, however, you can lock in a fixed price guaranteed not to increase for (5, 10, 15,20,25,30) years depending on your age. WHOLE LIFE insurance plans are insurance that combines a Death Benefit with cash accumulation that is guaranteed and a non guaranteed cash dividend. It costs more than Term Life insurance plans, but the price is guaranteed not to increase as you grow older and thus should be in force even if you live into your nineties.
UNIVERSAL LIFE differs from Whole Life insurance plans in that there are no dividends, a limited price guarantee and the cash accumulation is a a variable interest rate. It offers an opportunity for a greater cash build up that Whole Life but also the possibility of a smaller build up. Initally the price for this policy is usually less than Whole Life insurance plans. Like Whole Life insurance plans, it is designed to outlast Term Life insurance plans by maintaining an affordable price throughout your lifetime(but is not guaranteed). Riders? Riders are additional insurance coverages that can be added on to your policy for a small additional cost. The typical policy offers a choice of the following riders: ACCIDENT DEATH RIDER - also known as "Double Indemnity", provides a payout of double the policies death benefit when death is due to an accident.
WAIVER OF PREMIUM RIDER - provides payment of your policy's premium by the insurance company while you are disabled.
CHILD RIDER - allows for insurance on all your children for one low price. You can usually buy from $1,000 to $10,000 per child.
SPOUSAL RIDER - allows for separate coverage for your spouse under your policy.
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