Life Insurance

Life Insurance Basics

Posted by on Sep 26, 2016 in Life Insurance, Uncategorized | 0 comments

Life Insurance Basics

  When you start shopping for life insurance you’ll quickly discover that there are two main policy types: Universal, sometimes referred to as Whole or Permanent life insurance, and Term. Understanding the major differences between the two policy types will make it easier to select the one that’s right for you. Term Life Insurance Simply put, Term insurance has an expiration date – This type of policy is in force for a set number of years, and then the coverage ends. Because the company has a lower risk of paying out on this type of policy, the premiums are generally more affordable, allowing you to take out a higher amount of coverage. Common terms for these policies are 10, 20, and 30 years. The longer the term, the higher the premium is likely to be due to the higher risk of death occurring during that time period. Term policies do not offer cash accumulation accounts. At the end of the term, the premiums you have paid do not come back to you in any way. If you want to take out a new term policy after the term ends, your age and any changes in your health may result in a higher premium or even a denial. Universal Life Insurance Commonly referred to as Whole or Permanent life insurance, Universal life insurance typically covers you as long as you live, or until you hit a predetermined age-usually around 99 years-in which case the policy will pay out. In most cases, this policy will last until your death. This type of policy is more expensive because the company expects that they will definitely pay out on it at some point, since it does not expire. As long as you continue to pay your premiums, this policy remains in force no matter what happens regarding your health. When to Purchase? Whether choosing Term or Universal life insurance, it’s important to know that age; medical history and even occupation are the main factors in determining premium cost. If purchasing Term insurance, a good rule to follow would be to purchase a 30 year policy before age 25 while in good health. If purchasing Universal insurance, it would be best to purchase a policy prior to age 25 while in good health. Which one to choose? Both of these types of life insurance have their place and are useful in different situations. The best type of policy for you depends on how much coverage you need, how long you need the coverage, and what you can afford to pay for your premiums. In many cases, a combination of two policies, one from each type, offers the best coverage. For more information or to receive a no-obligation quote, give us a call at:...

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The Top Three Factors Affecting Life Insurance Premiums & Qualification

Posted by on Jul 15, 2016 in Life Insurance | 0 comments

The Top Three Factors Affecting Life Insurance Premiums & Qualification

You might never have really thought about what it takes to qualify for a life insurance policy or what affects the premiums you pay. By the time you get around to figuring it out it could be too late. Here are the top three factors that go into determining what you will pay for your life insurance coverage as well as whether or not you will qualify for coverage. Occupation & Hobbies If you have a dangerous occupation such as a firefighter, or engage in potentially dangerous activities like certain sports, this can affect your eligibility for life insurance as well as your premiums. When you put your life in danger either at work or at play, the insurance company sees a higher risk of paying out on the policy. In some cases they may deny you altogether simply based on the activities you engage in regularly. These are some of the major factors leading to insurance company decisions regarding life insurance premiums and whether or not you qualify. Some of them can’t be changed, while others can-and you should take them all into consideration if you want to get the best rate on your policy. Age The older you are, the more you will pay for life insurance. When you take out a policy at a younger age, the company expects that you will be paying the premiums for a much longer time period, and therefore your monthly payments will be smaller. The older you get, the shorter the time period during which they can expect to receive payments from you.  This means they will increase the premiums accordingly.  Your age also has an impact on your health.  The older you are the more likely it becomes that you will develop a serious health condition that could make it even more likely the company will pay out on the policy. Health Everything about your health will be taken into consideration when you apply for a policy. Most companies will require at least a questionnaire filled out, if not a visit from a doctor or nurse to check up on your overall health. This includes things like your weight to height ratio to determine if you are overweight, blood tests to check cholesterol and look for serious illness, and sometimes more. They will ask about your lifestyle as well as smoking, drug, and alcohol use. Even what seems like a minor health issue can result in a higher premium amount, because it could develop into something more serious later on. These are the top three factors leading to insurance company decisions regarding life insurance premiums and whether or not you qualify. For more information on the variety of life insurance products we offer, please contact us:...

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Choosing Life Insurance Beneficiaries

Posted by on Apr 6, 2016 in Life Insurance | Comments Off on Choosing Life Insurance Beneficiaries

Choosing Life Insurance Beneficiaries

Choosing Life Insurance Beneficiaries is one of the most important decisions a person makes in his or her lifetime. Life insurance is, after all, meant to protect family and loved ones after we’re gone. While immediate family may seem to be the obvious choice, there may be other people and organizations which rely on you whom you don’t want forgotten. Children and Spouse – For most of us these are the beneficiaries to whom most of our funds will go. It’s important to ensure you choose a policy that will not only cover their daily expenses such as any outstanding debts and mortgage payments, but also future expenses such as tuition fees for your children and a retirement fund for your spouse. Parents – If your parents rely on you for help with expenses such as medical fees, prescriptions, or other living expenses, it’s important that you leave a portion of the coverage to them. This will give you peace of mind of knowing they’ll be taken care of. Extended Family and Friends – Whether it be siblings, nieces and nephews, or close friends who rely on you for various expenses, ensuring that they are covered is also important. Business Partners and Employees – If you own a business or are involved in any business ventures with other individuals, making sure that their interests are protected is extremely important. It’s also important that you have the necessary protections in place for any employees you may have to ensure they are not put in a difficult financial situation. Organizations and Charities – If you offer financial support to any charities, organizations, or groups that rely on your support, making sure that it continues after you’re gone is an important part of taking care of your responsibility in estate planning. An easy plan is to allocate an amount similar to what you currently provide over a set period of years following your death. There are many individuals to consider when choosing life insurance beneficiaries. Before purchasing a new policy or when reviewing your current policy for an increase or change, reference the groups listed above and make a list of the individuals that apply to your situation. Our circumstances change frequently so it’s a good idea to get in the practice of reviewing your life insurance beneficiaries list on an annual basis and be sure to contact your insurance agent with any additions, deletions or allocation changes. For more information on choosing life insurance beneficiaries, please contact Kathy Seifert (CA License 0H46706) at Key Partners Insurance Services, Inc. at 661-235-5885 or [email protected] Key Partners Insurance Services, Inc. is a full-service independent insurance broker located in Valencia, CA. serving clients throughout California. Check Out Our Website! Follow us on Facebook Follow us on...

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