The purpose of life insurance is to ensure the well being of our loved ones, especially our dependents, in the event of our deaths. Connecticut Insurance Associates can help your family continue to live comfortably in the event of your death whether by accident, disease, or natural causes. Contact us today for more information about our Life Insurance policies.
The first step in choosing a life insurance plan that is right for you is to determine the economic needs of your dependents. In order to evaluate your life insurance needs, it is necessary to accept the assumption of possible immediate death.
– In the event of death what would happen to your loved ones?
– What is your current financial situation?
– If your family lost your income would their standard of living have to change?
There are immediate and long-term needs of those who are left behind. Immediate needs would include the funeral, burial costs, and medical bills. You must then take into account the long-term financial needs of your family such as: Income for the surviving spouse, Children’s expenses, College education funds, Mortgage, and debt payments, etc.
It is important to reevaluate your life insurance needs over time as situations change. We recommend that your life insurance needs be reassessed every 5 years or whenever there is a life-changing event. For example Marriage, Divorce, Birth of a new baby, change in assets or income, or major purchases such as a house or business.
There are two basic types of life insurance, temporary and permanent. They are divided into the following subclasses:
– Temporary Term Life Insurance provides coverage for a certain amount of years for a specified premium. It provides protection for your loved ones in the event of death. If the policyholder dies before the specified term is up, the beneficiaries named to receive a payout.
– Permanent Life Insurance is life insurance that does not expire until the policy matures (pays out) unless the policyholder stops paying their premium. The policy cannot be canceled for any reason, except fraud, which must occur within two years. Permanent life insurance builds cash value.
– Universal Life Insurance is permanent life insurance that gives the policyholder greater flexibility in premium payments, and the possibility of a higher rate of return (builds cash value, interest is paid). More flexible death benefits- The policyholder can select one of two death benefit options.
– Limited Pay Life Insurance is permanent life insurance in which the policyholder pays a premium for a specified number of years (10 year, 20 year) and paid until age 65.
– Endowment Insurance builds cash value which equals a death benefit (a specified amount) and matures at a certain age. Endowment insurance is paid out; whether the insured lives or dies after a specified period of time (15 years, at age 65, etc).
– Accidental Death Insurance is limited life insurance that covers the policyholder in the event they die due to an accident. Accidental death insurance does not cover death due to medical problems or suicide. Benefits are also available for loss of limbs and bodily functions such as sight, hearing, etc.
Call the Connecticut Insurance Associates today for more information about our Life insurance policies.