Whether you are a student at Kentucky Wesleyan College or an administrator at the Owensboro Medical Health System Hospital, it is never too early to start thinking about life insurance. Life insurance can ensure that the people you love most will be financially cared for in the unfortunate event that an accident or sudden illness leads to your unexpected demise.
Life insurance is fairly complex, and choosing the right policy can be confusing. Fortunately, you can get help and guidance by consulting one of the many independent insurance agents in Owensboro, KY. Find an insurance agent near you to learn more.
Facts about Life Insurance
- As of 2017, only 57% of US adults had life insurance. This number has been steadily decreasing. In 2011, 63% of US adults were covered.
- Kentucky residents currently carry approximately $29.93 billion in life insurance coverage.
- This averages to about $68,000 in coverage per policy.
- Half of all life insurance products are purchased through independent agents.
Most Americans who have life insurance have only group coverage through their employers. These policies are not portable, so if these people move on to different jobs or retire, they will lose their coverage. An independent insurance agent can help you get coverage that will be there regardless of your employment situation.
How Much Does Life Insurance Cost in Owensboro, KY?
The cost of life insurance varies from person to person. Factors that can influence costs include:
- Your age: The younger and healthier you are when you purchase your policy, the less it will cost.
- Your personal health history: Insurance companies will typically ask questions about your health history as well as health issues affecting members of your immediate family members.
- Whether you use tobacco products: Smokers pay rates that are as much as two or three times higher than non-smokers. If you quit smoking more than a year prior to purchasing your policy, you may qualify for non-smoker rates.
- The amount of coverage you are purchasing: Obviously, a $1 million life insurance policy will cost far more than a simple $10,000 policy.
- The type of policy you are purchasing: Term life insurance costs much less than permanent life insurance (which includes whole life insurance and universal life insurance).
To find out how much a life insurance policy will cost you, contact a local independent insurance agent and start comparing quotes.
What Is Term Life Insurance?
Term life insurance is temporary coverage that stays in effect for only for a designated period, or term. They typically range from five to 30 years.
- Pros: Term policies are the least expensive way to get a high level of coverage during the years when you need it most, such as while your children are young or you still owe a lot on your house.
- Cons: At the end of your term, you will no longer be covered. At that time, it may be difficult to purchase another policy, particularly if you are suffering from a life-threatening illness.
What Is Whole Life Insurance?
Whole life insurance is permanent coverage. Unlike term life, whole life insurance does not expire. This coverage lasts for your entire life or at least until age 100. These policies are best if you begin them at a young age so that you can maximize your benefits and lock in affordable rates.
- Pros: Your tax-deferred premiums fund your policy while also building cash value. You can tap into this money at any time if your financial situation warrants doing so. You can do this in the form of an interest-free loan or by cancelling and cashing out your policy.
- Cons: This coverage comes with a higher price tag. Permanent policies typically cost six to ten times more than term policies. Also, if you fail to pay your premium on time, the policy may be terminated.
What Is Universal Life Insurance?
Universal life insurance is also permanent life insurance. These policies are similar to whole life but are more flexible, in that you can adjust your coverage amount and premium payments to fit changes in your life circumstances or financial situation.
- Pros: These policies give you flexibility in premium payments and coverage amounts, which can be changed at any time. Also, you can use funds from your accumulated cash value to pay your premiums if your financial situation warrants it. These policies have a cash value that you can tap into if needed.
- Cons: These policies cost much more than term policies. They typically have adjustable rates of growth so their cash value may not build as quickly as with a whole life policy, but in a good year, they may grow faster.
Which Policy Type Is Right for You?
If you are like most people, the most difficult decision you’ll have to make when purchasing life insurance is which type of policy to buy. Often, a financial advisor can advise you about which is best for your current financial situation. Ultimately, however, the decision is a personal one and yours alone to make.
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 have all the facts before making a decision.
How Much Owensboro Life Insurance Do You Need?
There is no hard and fast rule for how much life insurance is enough. Different people have different life circumstances and financial situations. While a young couple with children may want enough coverage to ensure that their kids can live a comfortable life and afford college, a recent retiree may only want enough coverage to handle funeral expenses so as not to burden their family.
If you are purchasing your policy for the purpose of income replacement in the event of your untimely demise, most financial advisors recommend that you purchase a policy that provides 10 to 12 times your annual income.
Why Buy Life Insurance through an Independent Agent in Owensboro, KY?
When you are ready to start looking into purchasing a life insurance policy, a local independent insurance agent can help. These agents can help you compare rates and quotes for a few different insurance companies so you can be sure that you are getting your policy at a reasonable price. They can also help you compare rates for different types of coverage.
Are you ready to learn more? Contact an insurance agent in Owensboro to get started.
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