Life Insurance Covers Your Family
In addition to health insurance and related products, Stellar Insurance Services, Inc. can help you determine if you have enough life insurance and what type(s) of policies will best serve your situation. Having adequate life insurance should be an important part of your overall financial plan.
At the very minimum, EVERYONE should have enough life insurance coverage to pay for burial expenses. According to the National Funeral Director's Association1, the average funeral as of Dec 31, 2006 costs over $7,300 - and that does NOT include burial & cemetery costs! The last thing a family should have to worry about after losing a loved one is coming up with thousands of dollars.
Even if you have no dependents that you are supporting with your income, you should consider having enough coverage to pay off any outstanding debts. Otherwise, your loved ones may be required to pay off those debts before receiving any kind of inheritance. It's fairly easy to determine if you have enough life insurance.
There are multiple types of life insurance products, and no one product is right for everyone. Below you will find a brief explanation of the various products that we offer. As always, we would be happy to meet with you and help decide which products are best for your needs.
Term Life Insurance
Term life insurance provides coverage for a preset amount of time - usually five, ten, or twenty years. If the you die during that term, the policy is paid out in full. Otherwise, the policy ends and you usually have the option to renew the policy - until you reach a certain age, as determined by the company. Since premiums are based on the age and health of the individual policy holder, they tend to increase with your age each time the policy is renewed. Once you are beyond he renewability age, the insurer may offer the option to convert the plan to a Permanent Insurance Plan.
Term life insurance can further be separated into Level Term and Decreasing Term. Level Term Insurance maintains a steady death benefit throughout time. Decreasing Term Insurance features a death benefit that decreases over time, and usually a lower premium. Decreasing Term Insurance is a popular choice for persons who wish to leave enough to cover decreasing financial obligations - such as a mortgage.
Permanent Life Insurance
Permanent Insurance provides coverage for the duration of your lifetime. It also includes a savings feature - in the form of cash value - that may be collected, borrowed, used to pay premiums, or even used as collateral for a loan. Permanent Insurance is intended for long-term coverage and typically takes a few years to build cash value. There are also variations of permanent life insurance. Find out more about permenant life insurance here.
Please Contact Stellar Insurance Services to get quotes or more information.
1 - NFDA.org