Life Insurance Consultant
What is Life Insurance
Life insurance is a contract between an insurance company (insurer) and the insurance policyholder (insured) in which the insurer agrees to pay a sum of money to the family members or beneficiaries of the insured in the unfortunate event of the insured’s death or a terminal illness, depending on the contractual agreement.
To be eligible for life insurance, the insured has to pay a fee called a premium to the insurer on an agreed basis.
However, the insurer retains a right to reject a life insurance claim if:
- The insured fails to pay their premium on an agreed basis.
- The insurer writes an untrue statement on the insurance application
- Insured beneficiaries fail to provide the necessary documentation, e.g., a death certificate or the insured death was caused by lingering health issues or suicide.
When Should You Get Life Insurance?
Many people have different opinions on when to get life insurance. But the truth is it depends on your financial situation, family dependents, and debt history.
What is Life Insurance
Most people get life insurance at the age of 20, 30, 40, or even 60 for different reasons. It could be because they have a large amount of debt to pay off that might affect their family members when they die. It could also be because they are the working member of their family or the breadwinner of the family and the family members are dependent on them for survival. The right time to get life insurance can also depends on the type of insurance you get.
However, life insurance is typically less expensive when you are younge and healthier. You will have to pay a smaller premium than an older person who has a shorter life span.
Getting life insurance earlier in life can prevent a rejected policy. This is because as a person grows older and develops age-related diseases, it gets harder to get life insurance. Also, getting life insurance at a younger age increases the amount of benefit you are likely to get at the end of the contract term.
Which Type of Life Insurance is Right for Me
There are different types of life insurance in North & South Carolina, and it is important to know which of them is right for you.
Some of the types of life insurance are Whole life insurance, Universal life insurance, Variable life insurance, Indexed universal life insurance, Simplified issue life insurance, etc. Each of these types of life insurance can be found under the two primary types of life insurance. Term life insurance and permanent life insurance.
Term Life Insurance
Term life insurance policy provides coverage for a period of time. It is usually cheaper than permanent life insurance and can be renewed if it expires. If the insured dies within the period of time agreed in the policy, the beneficiaries would have access to payment, but if the insured is still alive by the time the policy expires, no money will be paid by the insurer.
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Term life insurance can be renewed, but each time it is renewed, your premium increases.
Before signing a term life insurance policy, it’s important to ask how much will be paid each time you renew a contract. You should also know if there is a certain age when your contract will no longer be renewed.
Most people opt for term life insurance because it is flexible, easy to understand, tax-free, and relatively cheaper than the other type of life insurance.
Permanent Life Insurance
Permanent life insurance provides you with financial coverage throughout your life. As long as the premium is paid at the stipulated date, beneficiaries will have access to payment after the insured’s death.
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Permanent life insurance usually requires an expensive premium because of the permanency of the contract. Also, the insured can borrow from the cash deposited into the policy while they are still alive.
How Do You Know Which Type of Life Insurance is Right For You?
Both life insurance policies have advantages and disadvantages. Consider your life circumstances, health, family, debt, etc. and read more about each policy to become educated on them. If you are still uncertain, consult with a life insurance advisor.
Why Should You Use a Life Insurance Advisor?
Before buying any life insurance, you should consider consulting with a life insurance advisor. An insurance consultant can simplify the daunting process of insurance application for you. Before signing an insurance policy, many decisions are expected to be made, and you must also ensure to be careful of errors so that you won’t get rejected. This is where a life insurance advisor can help. Proper life insurance planning is important because it helps you make careful decisions on which insurance policy type to choose, how to prepare yourself against unexpected losses, and how to support yourself financially in case of any insurance crisis that may arise.A life insurance consultant will guide you through these decisions and help you choose a type of life insurance that suits your age, financial capacity, health, and long term goals. An insurance consultant can also ensure you ask the right questions when you are signing a contractual insurance agreement.
Contact TruNorth Advisors to Plan Your Life Insurance in North & South Carolina
Need an insurance consultant in North or South Carolina? Contact TruNorth Advisors today to plan your life and future. We are an insurance consultant company that is ready to listen to your financial situation and obligation, teach you about life insurance & long-term care, and help you make a decison that aligns with your goals. Contact us today!