If you are looking for life insurance in Clermont, FL, the first thing you need to determine is how much life insurance coverage you need. I usually break this into 3 different amounts with the first being paying off debt, insuring future income, and setting up college funds. Let's explore further.
Debt - This is the first area of concern when figuring out the amount of life coverage to set up for your beneficiary. Add up the total mortgage, car loans, personal loans, credit cards and last, expenses for a funeral. Write this figure down.
Future Income - Having the debt paid for is going to be a great help, but what about the lost income from the policy holder? If it is going to be a hardship for you, the beneficiary, to continue paying the other monthly obligations, then insuring 5-7 years of lost income will help you get through the rough period to figure out what direction your life will need to take. It may take a while to sell the house or find a new job or go back to school for higher education. Add this amount to the debt figure.
Education expenses - This last step is a 2 fold calculation as you may need to have the spouse obtain a higher learning education or you may want to make sure there are funds available for the kids to go to college. Although this step is important, it is the least important of the three steps. Add this to the other two figures and you will have your life insurance coverage amount that you will need to secure.
Once you determine how much coverage you need to purchase, the next step is how long to lock in your coverage. For instance, you can take out a 10,15, 20, 30 year term, or you can secure permanent life insurance to cover you for life. My philosophy in which plan to secure breaks down like this. You need a lot of coverage while you are young as the mortgage is high, numerous car loans, kids are young etc... so you should have a big block of term coverage to pay off what was mentioned in Step One.
As you get older, your life insurance needs will change and hopefully lessen as the mortgage will be lower, possibly the cars paid off, kids grown and maybe even some money in the bank. Eventually once things turn really positive you can cancel your term life insurance altogether.
When you set up the big block of term to cover the step one items you should also set up a 25,000 permanent plan to cover your last expenses for when the term policy cancels years down the road. The reason why you take it out when you are young is because your premiums will be lower and locked in for life. A lot of times these policies can be paid up for life in 20 years.
What are the different kinds of life insurance policies?
Southern Insurance Group offers an array of life insurance products to meet your needs. These products range from 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.
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!
Beneficiaries believe in life insurance
I have been blessed to sell my share of Clermont life insurance policies over the past 24 years and have seen firsthand the difference that it makes in a beneficiary's life. People are faced with a quick grip of reality in trying to figure out what they are going to do without their loved one and main bread earner passing on. It is beyond depressing if people don't plan properly. Having a properly planned life insurance policy is the difference between someone getting through this trying time or being thrown out on the streets because you can no longer pay your bills.
I have unfortunately talked to countless numbers of family members who have inquired as to if their loved one took out a life insurance policy with our company. it sad but when all the crying is done, it boils down to economics after that point. Do the right thing and make sure your family is protected today!
If you are receiving life insurance as a benefit of your job, congratulations. However, please remember, it is only a great perk if you are working. If you lose that job, you lose the life insurance.
Do not allow your family to flounder if you meet an untimely end. Make them whole so they can live the life you would have desired for them.
At Southern Insurance Group, we understand the importance of protection and the contentment of peace of mind. We have been providing it to your fellow earners in Clermont since 2008.
Complete the Protection Savings Form now and let the professionals at Southern Insurance Group craft a lifeline that will last a lifetime.