Captain Health USA

Making Health Insurance Great Again!


Leave a comment

Easy To Understand Life Insurance Guide: Navigating What It Is and Why It Is so Important!

Easy To Understand Life Insurance Guide:  Navigating What It Is and Why It Is so Important!

YOCG Tuesday 4 5 16 CanvaWho needs life insurance?  Ask yourself this…..If you don’t come home tonight will anyone be financially harmed?  If the answer is yes…..then you need Life Insurance.

Life Insurance is one of those things we know we should have but maybe we just haven’t gotten around to getting it due to our hectic lives, possibly it is hard to understand or may be we think it only applies to people who are a certain age and older.  Whatever is stopping you from having life insurance, you need to change it and this article will tell you why.

But first…some basics.

There are certain types of life insurance you need to understand first before you make any decisions regarding it.

What is Life Insurance?

Life Insurance is a type of insurance which pays an amount of money to beneficiaries upon the death of the person who was insured.  It is designed to help your family and dependents financially after you have passed away. For example, it can help your family with:

  • Ongoing income to help replace yours
  • Providing emergency funds for medical assistance, legal fees and funeral costs

Life insurance is usually broken down into certain types.  We are going to focus on the most common you will run into and give you a good understanding of them.

Term Life Insurance (also known as Temporary Life):

YOCG Wednesday 4 6 16 CANVASimply put, term life insurance is a policy that pays off a monetary benefit in the event of death during a certain/fixed time period, for example a 10 or 20 year time period.

Benefits of Term Life Policies:

  • Low cost – perfect for temorary coverage on a parent while kids are growing up.
  • Allows for high levels of protection at a lower cost
  • Tax-free proceeds paid to beneficiaries

Curious about how low cost this life insurance option is?  Check out my sample rate chart:

Life Rate Chart

Universal Life Insurance (also referred to as UL):

This permanent type of life insurance offers flexibility in premiums.  Individuals holding UL policies have the choice of paying the minimum premium of the insurance or including extra monies to be allocated to an accumulation account.  This account or fund may be used in the future to pay premiums or for future income in retirement.

Benefits of UL Policies Include:

  • Protects the insured for a lifetime
  • The ability to earn interest and/or grow based on outcomes of accounts tied to other investments
  • Access to tax free loans or income in the future.
  • Tax-free proceeds paid to beneficiaries

Whole Life Insurance:

YOCG Thursday 4 7 16 CANVAThis permanent type of life insurance has a fixed premium.   Tends to often come with higher premiums than a Term Life or a Universal Life Insurance policy that stays the same your whole life.

Benefits of Whole Life Policies Include:

  • Protects the insured for a lifetime
  • Offers fixed premiums
  • May or may not have excess value in the future.
  • Tax-free proceeds paid to beneficiaries

Discovering Why Life Insurance is Important

The benefits of the various policies listed above should make it easy to understand why it is so important to get coverage.  Take it one step further…

You unexpectedly die due to an accident.  The shock of your death to your family and loved ones is unimaginable.  Compound the grief and loss your family will experience in regards to your death with:

  • Medical bills sustained due to your death
  • Paying daily living expenses without your income
  • Funeral costs
  • Legal fees
  • The uncertainty of your family’s financial future

Unless you have been able to amass a large, profitable financial portfolio, how will your family manage without your regular income?  Who will pay the bills? The mortgage? Who will put food on the table and how long can they sustain it?  An affordable life insurance policy is the answer to these daunting questions.  A life insurance policy will help you to continue to provide for your family and dependents.

Do you have questions about life insurance and what policy may be right for your family and their needs?  Contact me!  I am here to help!  Your Obamacare Guy at (813) 391-3448 or dave@YourObamacareGuy.com.