Ah, Mountain View! There’s obviously the Google campus to be sure, but there’s so much more! Mountain View features a revitalized downtown area with integrated arts/library/city hall features that conjure up a memory of a European walking city. Make sure that you find a parking spot early on a hopping Friday evening in the good weather, however. Otherwise, you’ll spend a long time looking for a spot near all the great dining locations!
Life Insurance
Prepare for your future by protecting the present. A life insurance policy ensures your loved ones have financial protection in the event that you can longer provide for them. It provides a security net that will let you cherish all of life’s little moments without worrying about the “ifs.”
Life insurance policies come in an endless number of flavors. Regardless of preferences, duration, or features, though, there is guaranteed to be a policy to fit your needs and budget. Discover why life insurance is one of the best investments you can make.
Why Life Insurance?
Investing in a life insurance policy is investing in the future wellbeing of your family. If you were to die tomorrow, would they be ok financially? Life insurance ensures the answer to that question is yes.
There are countless reasons to sign up for a life insurance policy. That includes, but is not limited to, paying burial expenses, reducing debt, preparing for college, and covering estate taxes. While we could talk about each benefit ad nauseam, we’ve boiled down the list to these five essential reasons.
Financial Security
Life insurance provides a financial safety net in a couple of ways. The most prominent aid comes in the form of replacing lost income. If you die, the policy will ensure your family receives compensatory income to cover daily expenses and monthly bills.
Life insurance is also a form of investment. For instance, insurance providers tie universal life policies to specific investment options, which can diversify risk within your financial portfolio. Additionally, if you are a business owner and your business partner passes away, your life insurance policy can protect the company you built together.
Peace of Mind
It is challenging to overstate the importance of peace of mind. Insurance provides precisely that by giving families assurance that they will have coverage no matter what life throws at them. Whether there is an unexpected death or severe injury, insurance companies will step in to cover some or all of the expenses.
For instance, final expense insurance pays for costs associated with a funeral. That can include everything from the burial to the embalmment. During a period of deep emotion grief, there is solace knowing insurance companies are there to pay those expenses.
Personalization
Insurance policies are as unique as their policyholders. Here is a non-exhaustive list of some features you can customize in your insurance policy with the help of a qualified insurance agent:
– Accelerated death benefits
– Cost of premiums
– Death benefit
– Investment of cash value
– Payment schedule
– Spouse or child riders
– Terms
– The number of beneficiaries
– Total coverage
Personalization has become a necessity in the modern insurance world. According to research, 88 percent of insurance consumers want more flexibility over the features in their plan. Tailoring your coverage to your specific needs and budget will ensure you walk away with the perfect policy.
Built-in Cash Value
When purchasing permanent life insurance, you receive two things: the insurance policy and the cash value component. The policy covers you and your loved ones. The cash value part works like a savings account as it accumulates value the more time the money sits in one place.
Put another way: your investment will increase in value the longer you stay alive. Plus, many insurers will let you withdraw from your cash value accumulations without impacting your death benefit. However, some policies require you to use the cash value during your lifetime. Otherwise, it may go back to the insurance company.
Affordability
One of the frequent excuses for not purchasing life insurance in Mountain View, CA, is the cost. Fortunately, some policies work on any budget. There are even plans that cost as little as one dollar per day.
Those who have the most to gain from low insurance prices are fit and young. These individuals will have the lowest premiums. Additionally, you can lower your premium’s price if you opt for term life insurance as opposed to a permanent policy.
What Kind of Life Insurance Do I Need?
All life insurance policies are not the same. There are different options depending on the length of coverage, features, and numbers of policyholders. Here are eight types of life insurance you should know.
Term Life Insurance
Term life insurance pays a guaranteed death benefit if you die within a set timeframe. The policy is straightforward and affordable, especially in comparison to permanent plans like whole life insurance.
Most terms are 10, 20, or 30 years long, and the death benefit does not come with additional values, such as a savings component. Once the term expires, you can renew it or convert the policy to a permanent plan.
The cost of term life insurance, which is also known as pure life insurance, depends on several factors, including your health, life expectancy, and age. The plan is ideal if you want coverage if
you die prematurely or a way to provide for your family if you can no longer do so. More often than not, term life insurance costs about as much as a single cup of coffee each week.
Whole Life Insurance
As the name suggests, whole life insurance is a permanent form of coverage that lasts until you die. These plans often include cash savings and investment components, which are known as the policy’s cash value. The cash value is tax-deferred, so you don’t have to pay taxes on your wealth accumulation. Additionally, you may opt for whole life insurance, knowing:
– The premiums are at a fixed price for the duration of the insurance
– Your family will receive a death benefit as long as you make payments on time
– You can withdraw from the policy or take out a loan
According to the Insurance Information Institute, whole life insurance is the most common form of permanent life insurance. The plans require you to pay a premium each month, though there are some options with limited pay plans of 10 to 20 years. Because whole life insurance guarantees a death benefit, the premiums are higher than the ones for term life insurance.
Universal Life Insurance
Universal life insurance is a flexible alternative to whole life plans. The policy comes with adjustable premiums, which include a cost of insurance (COI) amount and a cash value component, as well as a death benefit. You can pay a single lump-sum premium or make scheduled monthly payments.
The value of the policy is equivalent to the minimum premium payment necessary to keep the coverage active. There is a savings component that accumulates cash value based on a specified interest rate or the current market. You can access the cash value without affecting your guaranteed death benefit.
Variable Universal Life Insurance
If you’re looking for an alternative to whole life insurance, you might consider variable universal policies. These have a built-savings feature and flexible premiums, like universal life insurance. Instead of working based on a prescribed interest rate, though, the investment aspects works like a mutual fund.
You can invest your cash value into stock, bonds, and other financial instruments. This flexibility provides a more dynamic range for growth potential as you can diversify the risk in your portfolio. Note the return of the cash component contains no guaranteed return on investment.
Most variable universal life insurance policies have limits on the cash value component. The caps include the floor and ceiling limits, as well as a sub-account management fee of 0.05 to 2 percent. For instance, most insurance providers will provide a floor of zero, so policyholders don’t lose money.
Simplified Issue Life Insurance
If you don’t want to take a medical exam to qualify for a policy, one of the best options is simplified issue life insurance. While there is a medical questionnaire, you can get coverage despite having poor health. Additionally, the lack of lab work means you can have an insurance policy within days rather than weeks.
These benefits come with a specific set of drawbacks. Essentially, you’ll end up paying more on premiums for the sake of the coverage’s convenience. Furthermore, simplified issue life insurance is relatively limited when it comes to policy values, customization, and overall features. For instance, most insurers only provide coverage of up to $100,000.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is another form of coverage that does not come with health requirements. These policies are ideal for elderly individuals, as the acceptance rate is nearly 100 percent. Like simplified issue life insurance, though, you’ll have to pay higher premiums each month.
One of the distinct features of guaranteed issue life insurance is the graded benefit. If you die within the first year or two of coverage, you will not receive the death benefit. The insurance company adds this feature as a way of deterring chronically sick individuals from signing up for coverage.
You can customize some features of your coverage, depending on your preferences. For instance, you may be able to get a higher death benefit if you pass away from an accident instead of natural causes. You may also look at early payouts for terminal diagnoses and fixed premiums.
Final Expense Insurance
According to the National Funeral Directors Association, the median cost of a funeral in Mountain View, California, is more than $9,000. You can plan for the expenses related to your passing with final expense insurance. The policy charges a monthly premium that will ultimately pay for funeral costs, such as:
– Ambulance, hearse, or other transportation services
– Burial plots
– Caskets
– Cremations
– Embalmment
– Flags
– Flowers
– Funeral direction and home facilities
– Hairstyling, makeup, refrigeration, and other body preparations
– Headstones
– Memorial packages and merchandise
– Urns
Final expense insurance involves meeting with a funeral director and estimating the cost of your funeral. The figure will serve as the basis for the policy’s overall value. Final expense insurance is ideal for those who want to prepare their families and loved ones against paying end of life expenses out of pocket.
Generally speaking, final expense insurance is more affordable than other policy options. It also provides peace of mind knowing the death benefit will go directly towards covering funerals costs. It is worth noting that the benefit is lower than other life insurances, and beneficiaries are under no legal obligation to use the money for funeral purposes.
Group Life Insurance
Group life insurance is a policy option often reserved for the workplace. Companies and organizations will use it as a way of covering a large number of people quickly and without significant upfront costs. While group life insurance is commonplace as it makes up more than half of existing life insurance policies in the United States, the coverage totals are relatively low.
One of the reasons group life insurance is cheaper is because employers purchase the coverage at wholesale value. If you have this policy, it may be best to may opt for more advanced coverage. That typically requires you to allocate a portion of your biweekly payment towards the plan.
In most cases, companies that offer group life insurance place employees on this coverage after a probationary period. You are only eligible for benefits while you still work for the company. If you are fired or quit, the contract ends immediately. Additionally, coverage ranges between $20,000 and $50,000.
How We Can Help
Picking a life insurance policy can be daunting. There are endless combinations of types, features, and benefits. If the insurance process seems hopelessly complex, CB Acker Associates is here to help. We are the top life insurance agency in Mountain View, CA!
Our team of knowledgeable and friendly agents will guide you through the process of securing life insurance one step at a time. We take pride in listening to our clients and understanding their specific needs and goals. Our goal is to connect each person with a policy they like at a price they love.
Whether you are interested in guaranteed issue or final expense insurance, let CB Acker Associates help make your dream policy a reality. You can schedule a free consultation or get a free quote by calling us at (659) 969-5844 or sending an email here. We look forward to hearing from you.