Thinking about your death, or the death of a loved one, isn't easy. Unfortunately, everyone will pass away. It's a hard fact to face, but true, nontheless. While life insurance can be hard to talk about, it's an important part of making sure that your passing doesn't leave your family in a financial disaster.
Hawaii Life Facts
- The #1 cause of death in Hawaii is heart disease.
- The average life expectancy of a Hawaiian resident is 81 years, almost 3 years longer than the national average.
- In HI, over 55 percent of adults are overweight or obese.
- Only 44 percent of individuals carry life insurance.
- Forty percent of insured Americans believe they do not have enough life insurance.
- Seventy percent of American households with children under 18 admit that they would have trouble keeping up with living expenses within a few months if the primary wage earner in the home died today. Forty percent of households with children under 18 admit they would have trouble paying living expenses within a few weeks.
What Is Term Life Insurance?
Many people in HI are confused about what life insurance is. At its base, life insurance is a policy that offers your family some sort of benefit when you pass away. Many different types of life nsurance policies are available, and while choosing a policy may seem overwhelming, some of the most common types of insurance policies are easy to understand.
One common type of life insurance is term life insurance. This is a life insurance policy that covers you for a specified number of years. There are two types of term life insurance policies:
- Level term: With this type of policy, your death benefit will stay the same for the entire length of the policy.
- Decreasing term: With this type of policy, the death benefit will decrease as the policy ages.
The most typical term life insurance policies are offered in five-year increments -- 5 years, 10 years, 15 years, and so on. Be aware, however, that most life insurance companies won't offer a life insurance policy that goes beyond 80 years of age. Additionally, your premium will depend on your health and the length of the term. Some policies will have a set premium for the policy, and others will have a variable rate.
What Is Permanent Life Insurance?
Permanent life insurance, also called whole or ordinary life, is the most common type of permanent policy. These insurance policies offer a death benefit and a savings account. THey require you to pay a set amount in premiums on a regular basis. The savings account value will grow based on dividends the company pays to you.
- Universal or adjustable life: This can allow you to increase the death benefit after passing a medical examination. The savings portion of the policy, called a cash-value account, generally earns a money market rate of interest. Once your savings account holds a balance, you may be able to alter your premium payments—as long as there is enough money in your account to cover the costs.
- Variable life: This combines a death benefit with a savings account. This savings account may be invested in stocks, bonds and money market mutual funds. The value of your policy will depend on the financcial performance. Some policies guarantee that your death benefit will not fall below a minimum level.
- Variable-universal life: This has both the investment risks and rewards characteristic of variable life insurance, along with the option to adjust your premiums and death benefit like typical universal life insurance.
Are Other Types of Life Insurance Policies Available in HI?
Insurance companies realize that the two most common forms of life insurance may not be the best fit for some indiviuals. Additionally, these common life insurance types don't cover everything -- which is why supplemental and additional life insurance policies are available. Below is a list of the most common types of supplemental life insurance:
- Long-term care
- Cancer insurance
- Critical illness insurance
- Funeral insurance
- High-risk insurance
- No-medical exam insurance
- Guaranteed life
Many other types of life insurance policies are available, but in order to get the best rates and coverage for your individual situation, speaking with an insurance agent is recommended.
How Much Is a Life Insurance Policy Quote in HI?
Life insurance prices vary depending on your individual needs and health. When you're shopping for life insurance policy quotes either online or in person, make sure to be ready to answer the following:
- Types of policies you're interested in
- Benefit amounts
- Your occupation
- Your age
- Results of last medical exam
- Any known health concerns
- Any tobacco/alcohol/drug use
- Driving record
- Past medical issues
These factors, plus many more, will be used in order to give you a life insurance quote.
Getting Life Insurance in Hawaii Is Simple
Getting a life insurance policy may seem overwhelming, but there are local professionals in your area who can help. A Trusted Choice® agent is always available to help you find coverages, suggest policy modifications, or simply to answer questions. Trusted Choice is committed to making sure you get the best coverage at the right price.