If you are a Tupelo resident who works for a large company like the North Mississippi Medical Center or BancorpSouth, you may have group life insurance as part of your employee benefits package. However, if you leave your job, you also leave that benefit behind. It is therefore a good idea to have a personal life insurance policy so you can be sure that your family is covered no matter what.
Life insurance can be complex, so deciding on the right policy is often confusing. Fortunately, you can get help and guidance by consulting an independent insurance agent in Tupelo, MS. Contact an insurance agent near you to learn more.
What Can Tupelo Life Insurance Do for Me?
Nobody likes to think about death, but if you are responsible for the well-being of others, it is important to consider. What if you are involved in a fatal collision on I-22? Or what if you are diagnosed with lung cancer and given just a couple months to live? How will your family cope financially?
Heart disease is the number one killer in Mississippi, followed by cancer, chronic lower respiratory disease, and accidents. In fact, about 1,700 Mississippi residents die due to accidents and unintentional injuries every year. Life insurance is designed to provide your loved ones with a financial safety net in the event of your passing.
The average life expectancy in Mississippi is 74.9 years, so chances are good that you will live well into your retirement years. However, if you are diagnosed with a chronic illness or are involved in a fatal accident, this insurance can ensure that those you leave behind will not have to worry about managing their finances.
If you have young children, you may want enough coverage to enable your spouse to raise them and put them through college on one income. If your children are grown and prosperous, you may want a small policy that is designed only to cover your burial expenses and estate settlement. Whatever your reasons for buying coverage, there is a policy that is right for you.
How Much Does Life Insurance Cost in Tupelo, MS?
The cost of life insurance can vary significantly from one person to the next. Factors that can influence costs include:
- Your age: The younger and healthier you are when you purchase your policy, the less it will cost you.
- 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.
- Whether you use tobacco products: Smokers pay two or three times more for their coverage than non-smokers. If you quit smoking more than a year prior to purchasing your policy, you may be able to 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 small $10,000 policy.
- The type of policy you are purchasing: Term life insurance costs much less than permanent life insurance (including whole life, and universal life).
An independent insurance agent can help you obtain and review quotes for various types of life insurance coverage.
What Is Term Life Insurance?
Term life insurance is temporary coverage that stays in effect for only for a designated period, or term. Terms typically range from five to thirty years.
- Pros: Term policies are the least expensive way to obtain a high level of coverage during the years you need it most, such as while your children are young or you still owe a lot on your mortgage.
- Cons: At the end of your term, you will no longer be covered. At that time, it may be difficult, or even impossible, to purchase another policy. This is particularly true if you have been diagnosed with a chronic or life-threatening illness.
If you would like to learn more about term life insurance and get an idea of what a policy will cost you, talk to a local independent agent.
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 not only fund your policy, they also build 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 canceling and cashing out your policy. If you miss a payment, funds may be taken from your accrued balance to cover your premiums.
- Cons: This coverage comes with a much higher price tag. Permanent policies typically cost six to ten times more than term policies, so you may not be able to afford to buy as much coverage as you might otherwise purchase with a term policy.
For more information about whole life insurance and to review customized quotes, contact an insurance agent near you.
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. Also, they typically have adjustable rates of growth so their cash value might not build as quickly as with a whole life policy. However, in a good year, they have the potential to grow faster.
If universal life insurance sounds like a good fit for you, you can get more information and start reviewing quotes by talking to a local independent insurance agent.
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 kind of policy to buy. Often, a financial adviser or a trusted insurance agent can advise you about which is best for your current financial situation. Ultimately, however, the decision is a personal one and is yours alone to make.
Independent insurance agents 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 Tupelo 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, retirees may only want enough coverage to handle funeral expenses so as not to burden their families.
If you are purchasing your policy for the purpose of income replacement in the event of your untimely demise, most financial advisers recommend that you purchase a policy that provides ten to twelve times your annual income.
Why Work with an Independent Insurance Agent in Tupelo, MS?
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 from a few different insurance companies so that 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 if you are still undecided about which type is best for you.
Are you ready to learn more? Find an insurance agent in Tupelo to get started.