Protect Your Loved Ones with a Comprehensive Life Insurance Policy

Worgess Insurance can provide you with a life insurance policy that will ensure that your loved ones are covered in the event the passing of you or your spouse, but how much coverage is enough? You don’t want to find yourself in a situation where your family faces financial hardship. Let’s look at some things to consider when purchasing a life insurance policy from the professionals at Worgess Insurance.

Coverage Amount (Death Benefit) – Probably the most important consideration, you need to determine how much money your beneficiaries are going to need to cover debt, funeral expenses, lost income, and any financial goals for the future.

Choose the Right Type of Policy – When choosing your policy, you need to select either a Term Life Policy (a more affordable options used for a specific time period) or a Whole Life or Permanent Policy (which is a lifetime covers with a cash value component).

Premium Costs – You need to make sure that you have a premium that fits within your budget and consider whether you want a fixed premium or one that is subject to increases over time.

Policy Term Length – For term life insurance, you should consider a duration that meets your family financial obligations (for example: a policy that is in effect until your children have become financially independent).

Conversion Options – Check if your term life policy offers an option to convert to permanent coverage at a later date without requiring a medical exam.

Riders and Additional Benefits – You should consider different options, including:

• Accidental Death Benefit – An additional payout when the death is accidental.
• Waiver of Premium – You may have premiums waived if you become disabled.
• Living Benefits – If you are diagnosed with a terminal illness, you could be allowed access to part of the death benefit.

Cash Value Growth (for Permanent Insurance) – If you are considering whole life coverage, you need to understand how the cash value grows and whether or not it fits your financial strategy.

Underwriting Requirements – You need to know whether you’ll need a medical exam and how your health status may affect your premium.

Payout Process – Get information about how claims are processed and whether or not beneficiaries will receive the funds they need in a timely manner.

Exclusions and Limitations – You need to understand what your policy will and will not cover (suicide clauses, high-risk activities, fraud, etc.).

Tax Implications – In most instances, life insurance payouts are tax-free, but you should consider the potential for tax consequences if you plan to use the payout for estate planning.

There’s plenty to consider and research when putting together a life insurance policy, so feel free to contact the experienced professionals at Worgess Insurance to make sure you have the plan that’s right for your situation.