How to protect your family if you die - what you need to know about life insurance in Kokomo Indiana
At its most basic, life insurance is a simple concept - you purchase a policy that pays to your beneficiaries when you die - but the decisions as to what kind of life insurance policy to choose is much more complicated. In the event of your passing, life insurance assures that your loved ones will be protected. Among other things, your family members can use the money for:
- Lost income - Most people buy life insurance as a means to replace income lost in the untimely event of their death. Providing insurance for survivors is important, and life insurance is the most cost effective way to do it
- Your children's education - Educating your loved ones can be expensive and often requires long-term strategic planning. People often contribute funds each year until they have enough money saved up to pay for their children's education. However, if something unexpected happens to you, there may not be enough money set aside to pay for their schooling. A life insurance policy can help by creating a lump-sum of cash that you can count on to cover your children's educational expenses.
- Paying off household debts - Debt can be extremely burdensome to your family, especially without your income available. Life insurance can be used to help pay off debt and create financial security for your loved ones.
- Paying for your funeral and other final expenses - Final expenses can be substantial, especially if there are medical bills, funeral expenses, and legal fees to pay. Life insurance can help cover those unexpected bills, and provide cash that can be used to help your family cope in a time of crisis.
What types of life insurance policies are available in Kokomo Indiana?
There are several different types of life insurance policies available to residents of Kokomo Indiana, including:
Term Life Insurance - The most straightforward form of coverage available, in which you pay premiums on a monthly or annual basis, and your family is protected for that 'term'. Killingbeck Insurance offers a variety of term products to suit your particular needs and budget. Select 10, 20 or 30 years of coverage and a guaranteed benefit. The affordable premiums are level for the initial policy term, and the policy itself is guaranteed to renew up to the age of 95. Term life is typically used to:
- Help provide for a family's loss of income
- Cover short-term debts and needs
- Provide additional protection for families raising children
- Help provide long-term protection to pay off a mortgage or college loan
For this reason, a whole life insurance policy can be described as providing life insurance protection with a savings feature. The terms and conditions of whole life insurance policies vary, so be sure to discuss the scope of the coverage being offered with your Killingbeck Insurance Professional before committing yourself.
Universal Life Insurance - This type of policy allows you the flexibility to customize coverage and premiums to meet your individual requirements. Universal life insurance premiums are paid into your policy's account value, where it earns interest. Policy holders have the ability to take loans or make withdrawals from the account value for personal needs. The policy continues as long as the cash value is sufficient to cover the various deductions each month. Features of most Kokomo Indiana universal life insurance policies include:
- Flexibility - The policy holder determines the amount of life insurance and premium payments.
- Death Benefit - Universal life insurance proceeds are typically income tax free to the beneficiary.
- Access to cash value - The cash value of your policy can be assessed to help with educational expenses, retirement support, and other personal objectives.
Cash Value Life Insurance - Cash value policies are 'permanent', and include a buildup of value in cash in addition to a death benefit. Cash value is the part of a permanent life insurance policy not needed for so-called 'mortality expenses'. The greater your risk of dying, the greater your mortality expense to your insurer. When young, healthy individuals purchase life insurance policies, they have a low mortality cost to their insurer, which is why most companies are so eager to provide to the young and healthy. With cash value coverage, you can borrow against your cash value and even take out some of that cash, but in doing so your death benefit will be reduced.
With so many options to choose from, which Kokomo Indiana Life Insurance Policy is right for me?
Whichever type of policy you choose, always make sure that it provides enough of a death benefit to meet your family's needs in the event that you pass away unexpectedly. When you are on the market for life insurance in Kokomo Indiana, calculate your family's requirements in terms of a death benefit and do not lose sight of this figure.
You have many options to choose from when purchasing life insurance in Kokomo Indiana. Some companies are solid, financially sound institutions while others are not so trustworthy. A company's financial strength is extremely important because, hopefully, no one is going to collect on your life insurance policy for a long time.
Have you done all you can to make sure your family will always be taken care off? At Killingbeck Insurance, we want you to feel confident that you are making informed decisions. We offer flexible term life insurance policies for almost any budget. You can choose a coverage term ranging from 10 to 30 years. It's a great way to protect your family. Check out the Insurance Quotes section on our website today to find out more or call (765) 452-8000 to obtain a hassle-free quote from our Kokomo Indiana Life Insurance Experts.