Life Insurance Information
Life Insurance- including Bellefontaine, Marysville, Columbus and Central Ohio
Let's face it: NO ONE wants to talk about life insurance. Thinking about your end of life and the loved ones you will leave behind is never pleasant. But the sooner you have the conversation and make appropriate plans, the sooner you can get back to living your life.
We never enjoy the conversation with a surviving spouse or child that the deceased didn't have life insurance or that they didn't know we even offered life insurance. So yes, we offer life insurance and would be honored to be able to discuss your needs and provide a solution. Here's how we approach the life insurance discussion.
- Open, honest, and above all, caring discussion to uncover your needs.
- Explanations on your terms- and using language you understand.
- Experienced professionals with the skills and knowledge to make your experience positive.
- No hard sell. EVER.
What is life insurance and how does it work?
A life insurance policy is a contract with an insurance company. You pay a set amount (called a premium) and in exchange, the insurance company pays a specified amount to a specified individual upon your death. The specified amount is called a death benefit and the individual is called a beneficiary.
Why is life insurance important?
There are many benefits of life insurance. In no particular order, here are a few reasons why life insurance is so important.
- To pay funeral costs.
- To pay outstanding debt at time of death such as car loans, credit card balances and mortgage payments.
- To provide a source of income for a surviving spouse.
- To provide money for children’s future educational expenses.
All of the above are simply just specific examples of the most important benefit of life insurance- to lessen the financial impact of your death for your loved ones.
Types of life insurance
Term Life Insurance
Term life insurance is designed to provide protection for a specific period of time, such as 10 or 20 years. Generally, the premium stays the same over that period of time (called level term). When the period of time is over, you may have a few options if you decide you still need coverage, including the option to continue at a higher rate (if you were 26 when you first applied and now you’re 46, you’d pay the premium for a 46 year old).
The insurance company may also give you the option to convert a portion of that coverage into a permanent policy, such as universal or whole life insurance (see definitions below). Always consult your life insurance agent to see what options are available when your term life insurance expires. There may be none or several. But you need to ask to know.
Whole Life Insurance
Whole life insurance is a permanent insurance designed to provide lifetime coverage. The premium often stays the same throughout the lifetime of the policy, but due to its lifetime nature, is often higher than a term life policy.
Whole life insurance does have a unique component- it builds up cash value over time. For example, each time you pay premium, a portion of that premium pays for the cost of the insurance and a smaller portion is set aside- this part is the cash value and accumulates over the course of the policy.
Universal Life Insurance (also referred to as UL)
Universal life insurance is similar to whole life insurance in that it is designed to provide lifetime coverage. It also shares a similar structure to whole life- when you pay premium, a portion of that premium pays for the insurance, a portion pays for administrative costs and a portion builds as cash value.
Unlike whole life insurance, universal life policies are flexible and may allow you to raise or lower your coverage amount or premium payment throughout your lifetime.
How is the cost of life insurance calculated?
Life insurance companies use rate classes to calculate premium. These rate classes are determined by factors such as overall health and medical history, height and weight, tobacco usage and even family medical history.
The better your health and other risk factors, the lesser your premium.
Contact Alan Galvez Insurance Today
Request your life insurance quote with Alan Galvez Insurance NOW.
5 QUICK questions will get you started! Note: By submitting this form you won't get an "instant" rate- instead you get a team that will shop our companies to find the best policy for you at the best premium. We have several companies in-house and access to MANY more. So you can stop shopping and leave the hard work to us! A member of our helpful team will contact you within one business day, but usually much sooner!
Helpful Tip: You might want to consider packaging your life insurance with your homeowners insurance, especially if you have a mortgage to pay off. Several of our companies will offer multi-policy discounts on your homeowners insurance and auto insurance when you get a qualifying life insurance policy too!
STRAIGHT FROM OUR CUSTOMERS.........
Jerry C. says "They care about the local community and customers in many ways. They offer very personal services and always available for assistance either by phone, website or in person."
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