Life Coverage

If you would like a quote for Life Insurance, you may call our office at 1-641-782-4626 so that we can provide you with the personal attention you deserve with your Life protection.

Life insurance is an asset that helps to add value to your estate by providing potentially high yields and different benefits on taxes.

General Purposes of Life Insurance

Creating an Estate: Life insurance can create an instant estate. Often estate owners are not able to create sufficient funds to take care of his/her loved one and life insurance provides an option to do this.

Paying estate taxes: Life insurance can pay for estate settlement costs and taxes. These types of costs can range from 3 or 4% to over 50% of the estate. It is important to remember that Federal Estate Taxes are do nine months after and individuals death.

Funding a business transfer: Often times business owners would like to purchase a share of the deceased owner's estate. Life insurance can provide the financing needed to do this.

College Funding: Life insurance can help provide funds for college. In a policy on a parent or minor's life, the cash value increases, and this can be use to accumulate funds that are needed to finance a college education.

Retirement Funds: Life insurance policies are a great way to earn significant returns to help accumulate the funds that are needed for retirement.

Loan Guarantees: Life insurance allows for funds that can be used to pay off business or personal loans.

 

Types of Life Insurance

Term Life: Term life insurance provides temporary protection (a death benefit) for a stated term period. Some of the advantages of Term life insurance are a low cost per thousand dollars of coverage in the early policy years, it is ideal for young couples with major family obligations and have a limited income, and it is ideal as a method to insure outstanding debt obligations such as a mortgage.

Whole Life: Whole life insurance provides permanent protection for the life of the insured. Some advantages of Whole life insurance are a low cost per thousand dollars of coverage in the later policy years, it provides permanent protection for the life of the insured, it provides a level premium that will not increase with age, it provides a savings element that can be borrowed or surrendered, and it provides flexibility through non-forfeiture values.

 

How much life insurance should you own?

Typically, the amount of life insurance that a person should own is six to eight times the amount of their annual earnings. However, there are many important factors that should be taken into consideration. Things like: Is the applicant married? If so, what is the spouses income? How many persons are dependant on the applicant? or even, What is the amount of death benefits that are payable from social security?

Due to the amount of calculations needed to determine the proper amount of life insurance needed, it is important to meet with an insurance advisor.