Southern Insurance Group is your one-stop shop for all your Clermont life insurance needs. Because we are an independent agency, we can shop your life insurance through all the top carriers in the USA, thus giving you the best the industry affords.
Finding the right life insurance policy
Finding the right life insurance policy for you or a family can be a daunting task especially if you don’t know what you are doing. I have found that a good percentage of people that we review policies’ for have the wrong policy for their needs, e.g. they want a policy to cover themselves for life but they have a 10-year term policy.
By you taking out this kind of policy, it represents a very short term need or a very limited budget. In essence if you passed away within the 10 year period, the policy proceeds would be paid and anything after 10 years would not. statistically speaking only about 3% of 10-year term policies pay out in a claim.”
If you outlive the 10 year term policy then your are faced with applying for more life insurance coverage or going without. The frustrating thing for a lot of people is that they find out that the new policy is much higher as they are now 10 years older and/or they may not be int he same health as before so the rates are increased due to health concerns as well. The agents at Southern Insurance Group have a unique approach to designing the right life insurance policy for you. We do a detailed needs analysis to determine how much coverage you will need and then review the durations of coverage that are available.
Four Reasons to Take Out Life Insurance on Children
There are compelling reason why a parent or grand parent should take out life insurance coverage on a child. Below I have listed four reasons that make it advantageous to do so. Contact Southern Insurance Group today for more information on your child's life insurance policy.
- Insurability-if your child develops any kind of childhood disease or illness, they may never be able to secure a life insurance policy when they are grown. By taking out a life insurance policy you are guaranteeing their insurability. A lot of times when you take out a policy for a child, a feature called GIO or guaranteed insurability option can be added to the policy which will allow numerous times in the future that your child can obtain additional life insurance without any medical requirements. We have millions of children in the USA that are uninsurable due to childhood illnesses who can no longer purchase life insurance.
- Last expenses-Nobody wants to think of the chance that something might happen to their own child but as you know it happens. I sold a life policy to a husband and wife and suggested also setting up a plan for the two kids as well. They didn't see the need to do so but because the premiums were very inexpensive they agreed to add child coverage to their policy. The family moved to Texas a few years later so I did stay in touch. It was 15 years after i sold the policy that I had a phone call from the mom who told me that her 19 year old son had passed away. Her husband had lost his job and they had no money for last expenses so fortunately the policy was still in force and the proceeds were paid directly to the funeral home to pay the burial expenses.
- Locking in the premiums-Most policies offered to children are whole life policies that earn cash value and dividends. when you take out a policy on a child that cost of insurance is locked in for life at that discounted rate. As all life insurance premiums are based on the age that you take out the policy, so there is no better time to lock in your cost of insurance then when you are young.
- Cash value accumulation-As mentioned above, whole life policies earn cash value and dividends which get larger and larger every year the policy renews. The compounding of this cash value is substantial as they age throughout life.
Reviewing a variety of plans
A brief needs analysis might entail making sure all the debt is paid for and then so many years of the bread earners income. This way the beneficiary will have a debt free home and then so many years of income to make lifestyle decisions. You can also increase the size of the policy to pay for items like college funds or retirement for the remaining loved one.
Determine the need or size of the policy
We will then help you with how long you can lock in the coverage based on your budget. Policies come in durations of 10,15,20, and 30 year term policies and then universal life and whole life policies that can cover you for life. We will help you determine what policy is right for you.
How to protect your family if you die...what everyone must know about life insurance
What you'll discover in this report:
- How to make sure your family is really protected!
- Cut through the confusing "insurance jargon" and know what a life insurance policy really says!
- The different kinds of life insurance policies...what they're good for, when to use which one
- Why smart consumers use life insurance...and the mistakes that other people make too often
- ...and much more!
How to protect your family if you die...
Life insurance is a simple concept -- you buy a policy that pays to your beneficiary or beneficiaries when you die -- but the decisions of what kind life insurance to purchase, how much of a death benefit and how much you pay are extremely complex.
* Note. There are more than 2,000 companies selling life insurance in this country. Some are very good, financially solid companies; others are not so sound. A company's financial strength is vitally important to you because, hopefully, no one is going to collect on your life insurance for a long time.
You want to make sure your life insurer will be around for the long haul. How do you do this? You can consult a seasoned insurance professional, which is probably your best bet, or you can look at how various independent organizations "rate" the life insurers you are considering. Ratings are like school grades, A+, A, A-, B+, etc. In general, it's wise to stick with companies that are rated A or better by most rating organizations.
Many Purposes for Life Insurance
Life insurance is far more than just a decision of how much to buy. Depending on your financial situation, life insurance can be used for a variety of purposes, such as:
- estate planning
- accumulating cash
- transferring wealth
- achieving estate tax liquidity.
Life insurance is like auto insurance in that you can buy a lot of it or not very much of it. Life insurance differs from auto insurance in that, depending on the type of policy you buy, you can pay a lot or a little for basically the same death benefit. Keep in mind, though, that the younger and healthier you are, the less you will pay for coverage. Life insurers like to have their policyholders around for a long, long time.
* Tip. So how much life insurance do you need? It depends. One common benchmark says your death benefit should be about six to eight times your annual earnings, but there are a variety of factors to consider:
- Other income sources.
- The size of your family.
- Whether your spouse works and his or her earning capacity now and in the future.
- The number of people who are financially dependent on you and for how long.
- The death benefits your family will receive from Social Security and any life insurance plan through your employer.
- And any special needs such as mortgages, college education funds and estate planning.
Make Sure Death Benefit Is Adequate
What kind of life insurance should you buy? That also depends. But keep this very important principle in mind:
* Tip. Whatever type of policy you buy, make sure it provides enough of a death benefit to meet your family's needs if you aren't there. When you consider buying life insurance, calculate what your family must have in terms of a death benefit. Don't lose sight of this number.
What kinds of life insurance policies are there?
There are several, but keep in mind that the terms and costs of the policies vary widely among our various insurers.
What kind of policy do I need?
Southern Insurance Group offers an array of products to meet your needs. These products are 10,20,30 year term policies, universal life, variable life and whole life policies. An explanation of each is below.
10,20,30 year term policies- These low cost policies are designed to provide level protection and premiums for the duration selected. After that point the coverage will terminate. They provide death benefit only and build no cash value.You may be able to convert or trade in the term policy for a cash value policy during a conversion period-even if you are not in good health. The premiums for the new policy will higher then what you were used to pay on the term policy.
Universal Life Insurance is a kind of flexible policy that lets you vary your payment premiums. You can also adjust the face amount of your coverage. Increases may require proof that you can qualify for the new death benefit. The premiums that you pay minus the expense charges go into a policy account that earns interest. The charges are deducted from the account value.The investment for this plan is done by the insurance company and an interest rate is given to the policyholder. This policy will always stay in force so long as there is money in the cash value accumulation account. The
Variable life Insurance is similar to universal life policy in how it is structured however the investment portion is invested into sub accounts, mutual funds or related investments instead of a flat interest rate. A prospectus is given when purchasing this type policy.
Whole Life Insurance is a permanent plan that will provide level coverage for as long as you live so long as premiums are paid. Premiums are usually paid for life but some plans offer a feature called premium offset which allow the value in the policy to pay the premiums. The premiums in a whole life policy are usually higher in the beginning years to build up your cash value which in turn will offset the high cost of insurance when you are much older. Whole life insurance over the course of your life will actually be less compared to you renewing a term policy throughout your lifetime. This is because the whole life premiums stay level for life and the policy earns cash value and dividends.
Southern Insurance Group’s expert agents are equipped to design a plan specifically for you. Give us a call today! What You Need to Know about Term Life Insurance.
Term life policies provide coverage for specific periods of time, sometimes as little as one year. While you usually can renew term life policies for one or more terms even if your health has changed, there's potentially a big risk here if you get sick during the term.
* Tip. If your health does change, you probably won't be able to buy another term without watching your premium skyrocket. You should ask your insurer or agent what the premium will be if you continue to renew the policy.
* Note. You should also ask whether you will lose the right to renew the policy when you reach a certain age. Because this coverage is fairly cheap, it's often a good option for young people in good health who can't afford to buy "permanent" coverage.
Here are a couple of term life policy options:
- Yearly Renewable Term Life -- This is coverage for a longer term, five, 10 or 20 years. The longer term also means that the costs to cover you are spread out so that you will avoid the potential for huge annual premium increases.
- Convertible Term Life -- This is yearly renewable with the option to convert to a permanent policy in the future. The coverage, which often has the lowest cost and highest death benefit options of term insurance, can be a good choice for younger people who can't afford permanent coverage but who need a large death benefit and the option to convert to a permanent policy down the road.
What you need to know about Cash Value Life Insurance...
Cash-value life policies have premiums that are higher at the beginning than they would be for the same amount of term insurance.
The part of the premium not used to cover the yearly cost for mortality and other expenses is invested by the company and builds up a cash value that you may use in a variety of ways. Here are some specific examples of cash-value life insurance:
- Whole (or Ordinary) Life -- Like other cash-value policies, this is permanent coverage. The cost is literally stretched out over your entire life, or what the insurance company expects your entire life period to be. Life insurers have tables that tell them how long, on average, someone of your age and physical health will live.
Say you want $500,000 in coverage. The insurance company's rates are based on how much they need to charge you in order to allow the company to recoup the eventual death benefit while you are alive. The premium and the death benefit don't change much in whole life policies. You pay so much a month for a given death benefit. However, dividends to policyholders can increase the coverage or decrease the premium.
- Universal Life -- This is the flexible life insurance. You can change your premium and your death benefit at any time, although a substantial increase in the coverage usually requires you to prove you are still in good health.
- Variable Life -- This is a hybrid whole/universal coverage in which the death benefit is dependent on the investment performance of the insurance company's assets. And you get to choose the investment vehicle -- money market fund, bond fund or stock fund -- for your premium.
* Note. If your investments do well, your policy's cash value and death benefit will increase. If not, they'll go down, but most variable life policies won't let your death benefit drop below a certain level. However, it's possible a company will charge you for a guaranteed death benefit.
Which type of policy is best for you? In general, if you have significant assets, it's better (and less risky) to have some sort of cash-value policy. But which one? It's more important to buy the coverage from an insurer that has the best chance of performing well in the future; an insurer that has low actual expenses and mortality costs. Such an insurer will be able to offer better terms, including higher death benefits, higher cash value and lower premiums.
* Tip. But, again, there are more than 2,000 companies selling life insurance in the United States. As a result, you have thousands and thousands of options. This makes it even more imperative that you have a trained insurance professional analyze your financial situation and determine what kind of policy, from which insurer, is best for you.