Top producer Eric runs a full-service agency helping the senior community navigate their Medicare needs and families seeking life insurance protection. Eric’s agency finds solutions for those seeking to protect their financial livelihoods and future. Many customers don’t know where to even begin, when to purchase and what to cover. Eric’s agency did a Q&A to help answer these tough questions, read below for answers!
“Now that 2015 is well underway and most of you have adjusted to the new health Insurance reality, you are probably either covered by an employer plan or you are enrolled in a plan through the ACA Health Insurance Marketplace. We have assisted hundreds of individuals, couples and families with making the right decision about health insurance.
Many of our current Health Insurance clients have also expressed concerns or have questions about Life Insurance.
Q: My employer provides Life Insurance. Is this good coverage?
A: If your employer is providing a low cost/no cost term life policy on your life, it is usually a good idea to accept it. However, if optional additional coverage is being offered, you can almost always buy additional insurance much less expensively directly.
Q: How much Life Insurance is enough?
A: That depends upon many factors including family makeup, income, life style, and what amount of income would need to be replaced if you or others were to pass away. If your income needs to be replaced, a good rule of thumb is to have adequate life insurance to cover 5-15 years of your expected income.
Q: Do I want term insurance or a policy that will cover me for the rest of my life?
A: Term insurance can be purchased with rates that change every year, or cover a finite number of years – usually 10, 15, 20 or 30. Term is less expensive to purchase and can be designed to cover the insured for specific periods of time. The most important consideration with term is the conversion clause. If an insured experiences a serious health issue, the best policies enable the insured to convert to a permanent policy at the same risk rating as the term policy. Permanent insurance has many important features that term policies don’t. I will be happy to compare features and benefits for you.
Q: Has Life Insurance become more expensive over the past twenty years?
A: Unlike almost everything else, Life Insurance has actually become a much better value in the past 20 years. If you have a policy that is more than 7 years old, savings to convert to a new policy will exceed 20% on mortality alone.
Q: What are Living Benefits?
A: Several innovative insurance companies will pay up to the face amount of the Life Insurance Policy if the insured becomes seriously ill or terminally ill. This is important because people are much more likely to become seriously ill and recover from the illness than they are to die from the illness.
Q: How have modern life insurance policies changed my long-term savings options?
A: Life insurance is the most tax efficient way to accumulate long-term savings. Indexed Universal Life policies have historically returned 7 – 8% making them the ideal place to accumulate wealth.
Why it’s important to speak with an insurance and financial expert? We can look through paperwork, and details to make sure everything you want covered will be indeed covered. Also, we can find customer life insurance solutions that may better fit your future goals and very likely save money doing it.”
Thanks to Eric and his team for sharing his expertise in life insurance and what his clients need to know before finding the right product. It is important to get in the mind of the consumer to better understand their needs and how to better serve them. Purchasing life insurance is an important milestone for many families to protect what they’ve worked hard to have and it’s essential you be there to answer their tough questions.