Types of Life Insurance Policy Florida
Reader’s Question:
What are the types of life insurance policy in Tallahassee Florida? Why do I need to purchase one?
Peter
Tallahassee, FL
Life insurance covers up a financial loss to survivors in the event of a breadwinner’s premature death. It provides a death benefit, under a specified amount, to the named beneficiaries when the policy holder dies.
People purchase a life insurance in Tallahassee Florida for many reasons. Among these reasons include: substituting an income loss, funding retirement plans, paying off debts or mortgages or paying for college educations.
Regardless of the reason for purchasing, everyone else needs a life insurance in Tallahassee Florida of one type or another. There are two types of life insurance that can be obtained in Florida. One is a Term life insurance and the other one is a permanent life insurance.
A term life insurance is the simplest and most inexpensive life insurance. It is known for providing financial protection for a temporary period of time. There is no investment involved in this type of policy. A policy holder may or may not renew his or her term life insurance.
Term life insurance is normally recommended for those individuals who need large amounts of coverage over a specific time period. Examples for these are those individuals that are paying mortgages or college education. They may no longer renew their term life insurance after college graduation or when a mortgage payment ceases. Initially, term life insurance premiums are much cheaper than the permanent life insurance. However, term life insurance may increase each year over the specified period.
Permanent life insurance, on the other hand, provides a long-term financial protection. This includes both a death benefit and in some cases, cash savings. Permanent life insurance payments builds over time yet premiums are costly than that of a term life
insurance. Rates usually are fixed or remain the same. This is recommended for those individuals with long-range financial goals.
Choosing The Right Life Insurance Policy In Tallahassee Florida
Reader’s Question:
I’m from Tallahassee, FL. I am a single working mom of 35 and have two kids. What kind of life insurance policy is best for me?
Chelsea
Tallahassee, FL
Excellent question! Getting to choose the right life insurance plan is important as it saves you money and gives you the peace of mind knowing your dependents are covered just in case something happens to you. In your case, I would highly recommend getting a Term life insurance policy.
A Term life insurance policy is a temporary kind of coverage – usually only meant to be kept for 10, 15, 20 years or so – and can give you a very big coverage amount or ‘face-value’ for a relatively cheap price. This kind of coverage is ideal for those raising a family, for people who are relatively young and healthy, and for those responsible for long-term debts such as mortgage.
You will pay far more money on a whole life insurance plan for the same amount of face-value, and it takes decades for whole life insurance plans to accumulate enough cash-value to match what you can get right now from term life coverage. This is also a very good time to buy term life, as rates and prices have dropped to an all-time low, thanks to Americans living longer, more sophisticated and accurate underwriting methods, and the state of the economy itself.
Here are a few things to keep in mind when buying term life insurance:
• Unlike whole life plans, don’t expect any lump sum of money waiting for you at the end of the coverage period. This is purely coverage and not much else.
• Smoking can make you pay rates up to three or four times higher than average. Smoking is a big risk to your health and anything that poses a risk to your life will make your life insurance Tallahassee policy to stay expensive.
• Use the Web to find the most competitive life insurance rates and maximize your savings. With the many online life insurance portals available (such as this website) it only takes minutes to shop and compare prices from a wide range of insurers available. The savings you can get can be worth hundreds of dollars a year.