Check out our most frequently asked questions below. Can't find what you're looking for? Contact us here.
How much life insurance do I need?
Determining how much life insurance you need requires an examination of your current and future financial obligations, along with the resources your family could tap.
Your future obligations are a combination of what it would cost to help your surviving family members meet immediate and ongoing needs like funeral costs, taxes, food, clothing, utilities, mortgage payments, and your future obligations like college and retirement funding.
The resources that your surviving family members could draw on to meet those obligations include your spouse’s or partner’s income, savings and investments, other income producing assets, and any life insurance you might already own.
The difference between the two—your financial obligations minus the resources your family has to meet those obligations—is the approximate amount of additional life insurance you need. If this sounds confusing, you’re not alone. That’s why most people turn to a qualified insurance professional when they want to figure out how much insurance they need.
What type of policy should I buy: term or whole life?
It’s impossible to say, because the kind of coverage that’s right for you depends on your circumstances and financial goals. But, generally speaking, term offers the greatest coverage for the lowest initial premium and is a great solution for people with temporary needs or a limited budget. Whole Life insurance may make more sense if you anticipate a need for lifelong protection, or if the option of accumulating tax-deferred cash values is attractive to you. Also, it doesn’t have to be one or the other. Often, a combination of term and permanent insurance is the right answer.
What are living benefits and how do they work?
Many policies contain a provision that allows a terminally ill person to collect a significant portion of his or her policy’s death benefit while still alive. The money can be used to get family finances in order, pay for uncovered medical expenses, or simply do certain things for your family or friends while you still can. It’s important to note that the amount taken out while still living is subtracted from the death benefit payments your beneficiaries receive, along with an interest charge or taxes for early payment of benefits.
What should I consider in naming life insurance beneficiaries?
- Always name a contingent, or secondary, beneficiary just in case you outlive your first beneficiary.
- Select a specific beneficiary rather than having the proceeds of your life insurance paid to your estate. One of the great advantages of life insurance is that it can be paid to your family immediately. If it is payable to your estate, however, it will have to go through probate with the rest of your assets.
- Be very specific in wording beneficiary designations. Saying “wife of the insured” could result in an ex-spouse getting the proceeds. Naming specific children may exclude those born later. If your child dies before you, do you want the proceeds to go to that child’s children? Changing the beneficiary designation is easy, but you have to remember to do it. Regardless, this is why it is so important to discuss these topics with a Blue Line agent.
Does it make sense to replace a policy?
Think twice before you do, because in many situations it may not be to your advantage. Before dropping any in-force policy, consider:
- If your health status has changed over the years, you may no longer be insurable at standard rates.
- Your present policy may have a lower premium rate than is required on a new policy of the same type, if only because you’re older.
- If you replace one cash-value policy with another, the cash value of the new policy may be relatively small for several years and may never be as large as that of the original one.
- You will be subject to a new contestability period.
We are happy to provide a detailed cost breakdown of both policies, including premiums, cash-surrender value, and death benefits. We can compare these along with the features offered by both policies. If you decide to surrender or reduce the value of the policy you now own and replace it with other insurance, be sure that your new policy is in force before you cancel the old one.
Should I just buy basic life insurance coverage or is it worth considering the “bells and whistles” that some policies offer?
Whether you should consider adding a rider to a policy you’re considering really depends on your specific needs, objectives and budget. Here are a few riders that you at least should take a close look at and consider.
A disability waiver of premium rider stipulates that if you become totally disabled for a specified period of time, you don’t have to pay premiums for the duration of the disability. Why might you want to consider such a provision? Disabling illnesses and injuries are much more common than you realize. If you become disabled and your income declines or disappears for a period of time, a disability waiver of premium can ensure that your life insurance policy will remain in force.
An accidental death benefit is another common rider. It will pay an additional benefit in the case of a death resulting from an accident.
Many companies offer accelerated death benefits, also known as living benefits. This type of rider allows you, under certain circumstances, to receive the proceeds of your life insurance policy before you die. Such circumstances include terminal or catastrophic illness, the need for long-term care, or confinement to a nursing home. Ask your agent for information about these and other policy riders.
How do I go about finding a good insurance agent?
Congratulations, you have found the Blue Line Insurance Group! Being an agency that consists of only former and retired law enforcement professionals, all of our agents have experienced tragedy in one form or another. Our goal is to reduce the suffering of people. Losing a loved one is a horrible experience. Financial burdens should not compound any unforeseen circumstances. You want to select an agent who listens well and will take the time to understand your unique goals and desires. Contact us today!
Remember, tragedy strikes without warning, make sure that you’re covered!
Where is the Blue Line Insurance Group located? How do I get to your office?
A great benefit about working with the Blue Line Insurance Group is that we will come to you! There is no need to drive to us. We typically work when you don’t. Also, there is no need to trouble yourself with cleaning your home or office. We’ve seen just about everything!
Ready to find out more?
Get in touch now and we can help you figure out just what you need!