Florida Life Insurance

Your Complete Guide to Life Insurance in Florida

Young family spending time together at home

While it may not be as fun as spending a day at Disney World, purchasing Florida life insurance is one of the best things you can do for your family. These policies help to ensure that your loved ones will have financial stability after you’re gone. This is especially important if you pass away unexpectedly during your prime earning years. But how do you know which policy is right for you?

When you work with a local independent insurance agent, you will have access to a reliable source of information. These agents can provide guidance and help you find a competitively priced policy that is well-suited to your particular situation. There are more than 1,500 independent insurance agents in Florida. Find an insurance agent near you to learn more about life insurance.

What Are the Top Causes of Death in Florida?

  • Disease of the heart, 23.7%
  • Malignant neoplasms / cancer, 23.0%
  • Chronic lower respiratory disease, 6.1%
  • Cerebrovascular diseases / stroke, 6.0%
  • Accidents / unintentional injuries, 5.5%

Why Do Florida Residents Need Life Insurance?

The average life expectancy in Florida is 79.6 years, and most people will live to a ripe old age. Unfortunately, whether due to a serious illness or a fatal injury, lives are sometimes cut short unexpectedly. If you have a life insurance policy in place, you do not need to worry that your death may cause your family undue financial hardship.

Unlike auto insurance, life insurance is not required by law, but that doesn’t mean it isn’t a wise investment for many Florida residents. Whether purchasing life insurance is right for you, and the type of policy that is ideal for your particular situation, depends largely on your personal and financial circumstances.

A small life insurance policy may be sufficient to cover your end-of-life expenses, such as funeral costs. On the other hand, a larger policy can provide for your spouse and children for years to come. Life insurance is the best way to ensure that your dependents will not suffer financially if you are no longer there to provide for them.

What If I Have Life Insurance through My Work?

Many residents of Florida are fortunate enough to have life insurance coverage included as part of their employee benefits package. If you are among them and have a family that depends on your income, you may feel that this coverage is sufficient and that investing in an extra policy is not necessary.

However, there are a number of ways that you can lose this employer-provided coverage, such as if you take a new job with a different company, get laid off following a corporate merger, or retire. If you leave your job, the life insurance coverage doesn’t go with you. That is why it is a good idea to have another policy as well.

Don’t put off purchasing a policy until you need to. Keep in mind that when you are older, you may find it difficult, or even impossible, to find affordable life insurance, especially if you have been diagnosed with a serious illness. By purchasing a policy while you are young and healthy, you can be sure that you have affordable coverage when you need it.

Is Life Insurance Expensive in Florida?

The cost of life insurance varies from person to person. Factors that can influence costs include:

  • Your age: This plays a major role in determining your insurance costs. By starting a policy while you are young and healthy, you can lock in the best rates.
  • Your personal health history: Insurance companies will typically ask questions about your health history as well as about health issues affecting members of your immediate family. The healthier you are, the less your coverage will cost.
  • Whether you use tobacco products: Smokers have a higher risk of significant health issues and premature death. They therefore pay significantly higher rates for coverage than non-smokers.
  • The amount of coverage you are purchasing: Obviously, a $15,000 life insurance policy will cost far less than a million-dollar policy.
  • The type of policy you are purchasing: Term life, whole life, and universal life insurance each have different costs and benefits. We will discuss more about these coverage types below.

What Is Florida Term Life Insurance?

Term life insurance is designed to provide you with coverage only for a designated period of time. You can purchase policies that range anywhere from five to thirty years. Term life is the most affordable way to get a large amount of coverage, since these policies generally cost about 10% of what a whole life policy would cost. Young couples may want to consider a 30-year term policy that can provide coverage during the years they need it most: while paying off their house and raising their children. 

  • Advantages: This is the least expensive life insurance option. It enables you to buy a large amount of coverage for a very low price.
  • Disadvantages: At the end of your policy’s term, you will no longer have coverage. At that time, it may be difficult to purchase another policy, particularly if you have contracted a life-threatening illness.

What Is Florida Whole Life Insurance?

Unlike term life, whole life insurance does not have an expiration date. This coverage lasts for your entire life, or at least until age 100. Although a whole life policy costs significantly more than a term policy, it offers an investment component and tax-deferred status, so for some, it might be worth the higher price. 

Whole life policies are best if you initially purchase them at a young age so that you can maximize your benefits and lock in the best rates. 

  • Advantages: Your tax-deferred premiums not only fund your policy, they also build cash value. You are able to tap into this money through an interest-free loan at any time if your financial situation warrants doing so. Also, if you wish, you can cancel your policy and collect your cash earnings.
  • Disadvantages: This coverage comes with a much higher price tag than a term life policy. Also, if you fail to pay your premium on time, the policy may be irrevocably terminated.

What Is Florida Universal Life Insurance?

Universal life insurance is similar to whole life in that it does not have a set term limit. This coverage is more flexible than whole life because it allows you make adjustments to your total coverage amount and you are able to use your accumulated cash value to pay your premium if you are unable to make your payment in any given month. 

Also, because universal life policies pay a variable interest rate on your accumulated cash value, you have the potential to earn more interest on your investment than if you have a whole life policy.

  • Advantages: These policies offer flexibility in premium payments and coverage amount, and they have a cash value that you can tap into if needed. These policies do not expire.
  • Disadvantages: Universal life policies cost much more than term life policies.

Which Policy Type Is Right for Me?

The most difficult decision when it comes to purchasing life insurance is which type of policy to buy. Often, a financial adviser can help you review your current financial situation to determine which type is best for you. 

An independent insurance agent can answer your life insurance questions and can help you review quotes for each type of coverage so that you can make an informed decision.

How Can I Find the Best Florida Life Insurance Policy?

A local independent insurance agent can help you find the right life insurance policy to meet your coverage and budgetary needs. These agents can work with several highly rated providers to obtain customized quotes for coverage. That way, you can choose the policy that offers you the best value for your money.

Contact one of the many independent insurance agents in Florida to get started.

Sources © 2019, Consumer Agent Portal, LLC. All rights reserved.

https://www.cdc.gov/nchs/data/dvs/LCWK9_2015.pdf

© 2019, Consumer Agent Portal, LLC. All rights reserved.

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