No one likes to think too long about their impending death, but as we age, buy homes and start families, it's one of those facts of life -- and death -- that we can't escape. You want to protect your loved ones from the financial burdens of your passing, and perhaps leave them a little cushion to take care of things when you no longer can.
Before you search for life insurance quotes, however, there are several factors to consider.
Despite the fact that many Alaskans play hard and live hard, residents of the Last Frontier live just as long as their American counterparts in the continental U.S. According to census data:
While we can do much to mitigate our risks to some of these causes of death, accidents can and do happen, with all too much frequency in Alaska.
Life insurance comes in many varieties and coverage options. Some policies provide end-of-life and funeral expenses only, ensuring your Alaska loved ones aren't put in a financial bind as they grieve their loss. Others can provide financial investment tools and provide extensive support to those you leave behind. The type of life insurance you need depends on what you want the policy to do for your family and loved ones.
The two most common forms of life insurance policies are term life insurance and whole life insurance.
The features of term life insurance available from most Alaska insurance companies include:
The majority of Alaska insurance companies offer these features with their whole life insurance policies:
When choosing between whole life or term life insurance, there are a number of variables to take into account. A qualified Alaska insurance agent can help you evaluate each of the following aspects of your circumstances and determine whether term life or whole life is a better option for you. The factors to consider include:
For example, a 35 year old primary breadwinner of the household with young children may want to consider buying a term life policy that would fully cover the family’s financial obligations.
Alternatively, this person could purchase a whole life policy that will not only pay that policy face value if they should die before their children are through college, but would also accrue a cash value that would provide additional benefits to his or her family or a growing fund of emergency money.
Many term life insurance policies are able to be converted into whole life insurance policies as circumstances change. Be sure to ask your agent if the policy you are reviewing has this option.
A basic life insurance policy for a young, non-smoker may be quoted at as little as $15 per month for funeral expense coverage and other end-of-life costs. On the other hand, a more comprehensive policy including interest on cash deposits could cost a middle aged smoker close to $1,000 for large payouts upon his death.
Most Alaska insurance companies use complex algorithms to calculate their life insurance premium quotes. They take several factors into consideration as they estimate your quote, including:
Note that every life insurance company uses its own mathematical equations to determine individual ratings and premiums. No two life insurance companies will quote the same costs for the same person, and the cost of life insurance can vary widely. For this reason, it is important to compare multiple quotes before choosing to buy a policy.
The last thing you want to leave your loved ones is a stack of debt and few resources to help them after you are no longer here for them.
Knowledgeable, independent insurance agents on the Trusted Choice network are always available to answer your questions, suggest coverage options, and even assist your family members in filing a claim upon your death. These agents have years of experience working with Alaska insurance companies, enabling them to find a number of quotes with the best coverage options at the most affordable rates. Contact a Trusted Choice member agent near you to find out how you can obtain a life insurance policy that meets your family's needs and budget.