Five life insurance tips from an advisor

While life insurance is something we all need, it’s not something we have. Perhaps you are young and in good health and don’t think you need it. You might be tight on money and feel you cannot afford a policy. You might not know where to begin.

To show how important life insurance really is, we’ve collected five tips from Frankenmuth Insurance to make it affordable and simple.

Here are five tips to help you determine how much life-insurance you need.

Tip 1: Check out your employer-provided insurance.

Is your spouse covered under a life policy offered by your employer? Do you have a life insurance policy through your employer? If so, take a look at the coverage. The majority of employer-provided health insurance covers up to 2x the employee’s annual salary. It may not cover all the costs associated with rebuilding after the loss of a spouse/household provider. Are child care expenses likely to rise? Can the mortgage be managed? These are some questions to consider when you think about adding life insurance to your employer-provided policy.

Our expert also suggests that you get a policy to help cover future expenses. The realistic amount of coverage is approximately 7-10x a person’s annual salary. This may seem like a lot to pay, but a $500,000 policy on a term life insurance policy will only cost you $25 per month.

Tip 2: Make sure you put your loved ones first.

It is difficult to discuss or even consider the worst-case scenario, such as the death of a loved one. If this happens, life insurance can be a safety net that will protect you and your loved ones from financial hardship. A comprehensive life insurance policy is one of the best gifts you can leave.

Tip 3: Choose the policy that best suits your needs.

Two main types of life insurance are Whole Life and Term Life. Whole life insurance covers an individual their whole lives, as the name suggests. Term life insurance, however, provides protection for a set amount of time (e.g., 10, 20, or 30 year) and often has a lower price. These coverage and price options allow a policy to be tailored to meet the needs of every family member, financial stage, or other life stage.

Tip 4: Add Life Insurance to your existing policy.

Frankenmuth Insurance provides home and auto insurance. If you have life insurance, it is worth adding to your policy. Additions to existing coverage can help you save up to 10% on auto and up up to 5% on home.

Tip 5 – Talk to an agent

It is a big decision and should begin with a conversation. Frankenmuth Insurance agents are available to help you with your life insurance questions, explain the policies to you and answer any questions.

Family Life Insurance

To protect the best interests of loved ones, there are many aspects to financial planning. There are many aspects to financial planning that can be considered, including insurance, saving for retirement and protecting your child’s safety. But family life insurance plans are able to cover many of these things together.

For a long time, the biggest myth surrounding life insurance was that it is for the breadwinner of the house. Many families have resisted this belief over the years and discovered that life insurance is a valuable financial tool for all family members, regardless of their income.

What life insurance plan should you choose for your family?

There are many factors that go into choosing a life insurance policy. These include the number of your family members, whether you have children or not, how likely you are to be diagnosed with a critical illness and any other investments and savings. There are many options, but these are the most popular.

Term insurance

This is one of most commonly used life insurance plans. Term insurance, also known as fixed-term insurance, is a policy in which the insured pays a pre-decided premium over a set period. You can choose the duration, the sum assured, as well as the frequency of premiums in a term plan. If the insured person dies within the term, the sum assured (also called the death benefit) will be paid to their family.

You can also add riders to your term plan for a critical illness. These riders can be used to provide financial support in case of critical illness or hospitalization.

Retirement / Pension Plans

These plans allow you to save for your golden years with retirement insurance. These plans can be compared to pension plans and offer the same benefits as an insurance policy. Individuals pay a premium in retirement insurance plans. They can either pay it in regular payments or one-time. On the death of an insured person, the nominee may claim the premium as a benefit for their demise.

If the insured person is able to survive the term, they will be eligible to claim benefits in the form regular installments that can serve as retirement income or a one-time lump sum payment. The term period for retirement plans usually lasts until age 60.

There are many benefits to retirement insurance plans beyond death benefits. They can be used to help you save for retirement and provide a valuable savings tool in the later years.

Child insurance

Child insurance can provide financial security for your child. The child’s education, wedding and health can all be paid for with the funds from child insurance. A child insurance plan allows parents, grandparents, or other guardians to accumulate funds by paying either a one-time or regular premium until their child turns 18. Once the child turns 18, parents, grandparents, and guardians can accumulate funds by paying regular or one-time premiums until the child turns 18. You can then either claim the entire corpus of the insurance plan or make regular installment payments to help the child.

Children can also benefit from child insurance in the unfortunate case of their parents’ death. These plans can help children pay for their educations or major life events, such as marriage.

Additional Resource:

https://www.iciciprulife.com/insurance-library/insurance-basics/what-is-life-insurance.html
https://www.efulife.com/
https://en.wikipedia.org/wiki/Life_insurance