There are important financial goals in life to plan for, such as paying for college, buying a home, and saving for retirement. Being prepared for unexpected events can help in addition to planning for big expenses.
In 2020, LIMRA's Insurance Barometer Study found that only 54% of Americans have life insurance, and many don't think they have enough coverage. If you're an adult with a home, a partner, and family, you should think about getting a quote.
Why do I need life insurance?
Life insurance is essentially financial planning. If your death would cause a financial hardship for your loved ones, then a life insurance policy can help reduce that burden. It can help you give to charity, pay taxes, or leave money for your family after you pass away.
What are my life insurance policy options?
While your options may seem endless, there are essentially two kinds of policies: Term Life insurance and Whole Life insurance.
- Term life insurance lasts for a specific amount of time (the term) and expires at the end of the term.
- Whole life insurance is a form of permanent life insurance and lasts your entire life. There are additional options that fall into these two categories, but this is a great place to start.
How do I decide the number of years to choose for my policy?
Ideally, you would want a life policy to be permanent and guaranteed to payout on your death. However, these types of policies can be expensive. We often recommend a term policy that will last for the next 10, 20 or 30 years, depending on your family’s financial goals. These policies have a level payment and provide the full-face amount upon death to your beneficiaries.
For example, a 20-year term policy for $250,000 pays out $250,000 to your beneficiaries upon your death anytime within the next 20 years. This type of policy is ideal for a new parent who might be interested in a 20 to 30-year term policy to ensure the well-being of their children.
Where should I buy life insurance?
Choosing the right agent to help guide you through the life insurance process is an important one. Make sure your agent is experienced, knowledgeable, and empathetic to address all your questions and concerns.
At Capitol Agency, we work with the best insurance companies to give customers policies that fit their needs. We pride ourselves in putting our customers’ needs above all else, and have been doing so since 1950.
How often should I review my policy?
A good rule of thumb is to review your policy annually to ensure adjustments are being made as life events change. Major life events (having a baby, buying a home, starting a business, etc.) should also trigger a policy review.
Capitol Agency Insurance products and service are Not a Deposit, carry No Bank guarantee, are Not FDIC Insured, are Not Insured by Any Government Agency and May Lose Value.