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Frequently Asked Questions About Life Insurance
Q. Why should I have insurance?
It’s unfortunate, but people die - some sooner than later. The important point is to do what’s right for those you love. A person gets life insurance to make sure that there is money available to maintain the financial life of those who will still be living and have a future. It’s a selfish decision in a way since you are looking out for your spouse and/or your children just like you would protect them from dangers and difficulties in life. With the purchase of life insurance you will know that the ones you love will be able to continue their lives without unnecessary financial disruption.
Q. What types of life insurance are available?
A. There are two main types: Term vs. Permanent Life Insurance:
Term is simple. You pay a premium for a period of time (the term) from 1 to 30 years and if you die during that period the insurance is paid to the person or persons you designate to receive it—called the beneficiary.
Term life insurance usually has the lowest premium in the early years making it the most affordable life insurance—initially. Term does not build cash value. If you purchase a $100,000 term life insurance policy for a 20 year period and you die in any of those 20 years, your beneficiary receives the proceeds (usually tax free).
Permanent life insurance is designed to last for your whole life. There are two main categories: Whole Life and Universal Life.
Q. How much coverage should I have?
The easy answer is you should have enough coverage to replace the income that you would have earned had you been alive to earn it. How do you calculate this amount? One example is to multiply your annual income by 5-10 times.
Q. How do I choose the right company?
A. Buying life insurance is little more complex than purchasing a car or a television.
When you purchase a policy you are buying a promise, a contract to pay something in the future vs. buying a commodity or something tangible. It is very important to examine the company backing your policy as well as considering the cost of the policy. Always consider the financial ratings of the company.
Q. What are the steps that I would go through to purchase a policy?
Call Terry for a free, non obligating quote. Rates may vary due to the following: Tobacco usage ,weight, medical history.
Q. How much does Term insurance cost?
Here are some sample rates.
10 Year GUARANTEED Level Premium Term Rates
Monthly Rates
| Age | $100,000 |
$250,000 |
$500,000 |
|---|---|---|---|
| 30 | $ 8.40 |
$ 11.38 |
$ 18.38 |
| 35 | $ 8.40 |
$ 11.38 |
$ 18.38 |
| 40 | $ 9.89 |
$ 14.66 |
$ 24.94 |
| 45 | $ 13.21 |
$ 21.88 |
$ 39.38 |
| 50 | $ 18.99 |
$ 33.69 |
$ 63.00 |
| 55 | $ 27.83 |
$ 50.75 |
$ 97.13 |
| 60 | $ 41.65 |
$ 80.10 |
$161.00 |
| 65 | $ 69.30 |
$136.94 |
$269.50 |
The above rates are based on a “Preferred Non Smoker” rating. Final rates will be determined after medical underwriting.
Insurer: Banner Life Insurance Company (Rated A+ Superior by A.M. Best Co.)
© 2008 Millennium Insurance Agency
Thursday, July 17, 2008 5:03 PM