Whether you are a Tampa resident who is currently enjoying retirement or you are preparing to start school at the University of South Florida, it is never too early to start thinking about life insurance. Buying in young lets you lock in great rates for life, while buying a policy later in life can help to ensure that your family doesn’t face undue expenses when you pass.
When you are shopping for a suitable life insurance policy, an independent insurance agent near you can help. These agents can answer your insurance-related questions, offer you information and advice, and can even provide you with a variety of competitively priced life insurance quotes. Contact an insurance agent in Tampa to get started.
Why Should Residents of Tampa, FL Buy Life Insurance?
Chances are good that you will live a long life. Indeed, the life expectancy in Florida’s Hillsborough County is 79.1 years. Still, more than 600 people in this county die unexpectedly from accidental causes every year.
Nobody likes to think about the possibility of a sudden, early death, but if you have loved ones who are dependent on you, this is something that must be considered. It is a good idea to make certain that your family will be able to cope financially if you are no longer there to provide a source of income or other important roles such as being a stay-at-home parent.
Life insurance can help support your family in ways you may not have considered. The cost of childcare in Tampa runs about $720 a month per child for daycare and about $1,920 a month if you hire a nanny. This may be too much for a surviving spouse to handle alone. A Tampa life insurance policy can ease that burden.
Are There Different Kinds of Tampa Life Insurance?
When you are ready to purchase a life insurance policy, you will have to select a policy type. There are two main types of life insurance policies to choose from:
Each of these coverage types will be explained in further detail below. In addition to term life and permanent life, you can often find hybrid policies or customized policies, such as policies that will provide coverage only for accidental death.
The type of policy that is right for you depends on several factors, such as your current financial situation, your current, and expected life circumstances, and your personal preference. An independent insurance agent can help you weigh the pros and cons for each of your options. That way, you can make an informed decision when making your selection.
The Pros and Cons of Term Life Insurance for Tampa Residents
Term life insurance allows for a high payout at a low rate. These polices are purchased for a given length of time (or “term”) that typically ranges between 5 and 30 years. If you happen to pass away during the course of your term, your beneficiaries will receive funds in the amount of coverage that you purchased.
- Pros: Term life policies are the least expensive way to obtain a high level of coverage. You can purchase your policy to provide coverage only during the years you need it most, such as while you are still paying off your mortgage or until your children have grown and completed their post-secondary education.
- Cons: Term life policies have no cash value and leave policyholders without life insurance once they expire. At that time, depending on your age and health, it may be very expensive, or even impossible, to purchase a new policy.
If you would like to learn more about term life insurance and find out how affordable it can be to buy a large amount of coverage, talk to an independent insurance agent near you.
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The Pros and Cons of Permanent Life Insurance for Tampa Residents
Permanent life insurance, as the name suggests, will stay in effect for as long as you continue to pay your premiums. The most common kind of permanent coverage is whole life insurance.
- Pros: In addition to providing death benefits to your beneficiaries, these policies serve as an investment vehicle and hold a cash value. This means that you can close out your policy and collect cash at any time. Some insurance companies will even allow you to take out a low-interest loan against your accrued value.
- Cons: Whole life insurance costs a lot more than term life. However, because your premiums will remain at the same rate for life, you can save money by buying into them while you are still young and healthy.
Under the permanent life umbrella, you will find whole life insurance, universal life insurance, and some hybrid life insurance policies.
Variable rate insurance is yet another type of permanent life insurance that is more customized to changing circumstances. You can discuss this and the other types of permanent life insurance with a local independent insurance agent.
How Do I Know How Much Life Insurance I Need?
The amount of coverage you need depends largely on your reasons for buying a policy.
If your children are grown and you have already paid off your mortgage, you may only need enough insurance to cover burial and estate settlement costs. Keep in mind that funerals and burial expenses average about $10,000. You don’t want to saddle those you leave behind with such a large expense. In this case, a small $20,000 policy may suffice.
If you have young children and large debts, you will probably want a larger policy that can enable your spouse to pay off the house and afford childcare, while also providing the funds needed to pay for your kids’ college education. Depending on how many kids you have and the value of your home, you may want to purchase between $500,000 and $1,000,000 in coverage.
It is important to consider both the immediate and ongoing needs of your loved ones when you are deciding how much insurance to purchase. An independent insurance agent can help you evaluate these needs when you are purchasing a Tampa life insurance policy.
Is Life Insurance Expensive in Tampa, FL?
The cost of your life insurance policy will depend on many factors. These can include:
- Your age at the time you purchase the policy
- Your current health status and your family’s health history
- Your current occupation
- Whether you use tobacco products
- The type of policy you are purchasing
- The amount of coverage you are looking for
In most cases, you will be required to answer a health questionnaire. Sometimes, you may also need to complete a medical exam, including blood work and a drug test, before you can be approved for a policy or quoted an accurate cost.
The one thing you should keep in mind is that it is best to buy life insurance when you are still young and in good health. Doing so can enable you to secure a policy at a great rate for the rest of your life. Unfortunately, if you are older and have been diagnosed with a fatal or chronic disease, you may find it difficult or impossible to find an affordable life insurance policy.
Why Work with an Independent Insurance Agent in Tampa, FL?
When you are ready to purchase a life insurance policy, you can get trustworthy guidance from a local independent insurance agent. Your agent can help you assess your coverage needs and can explain in detail your many policy options. Because independent agents are free to work with a variety of insurance companies, they can present you with several competitively priced policies for your consideration.
Are you ready to begin your search for the best life insurance policy in Tampa? Contact an insurance agent near you to get started.