The Pacific Northwestern state of Oregon has a population as diverse as the landscape. One thing that residents have in common, however, is a strong sense of family values and caring for those who depend on them. Unfortunately, approximately 30 percent of Americans currently feel that they do not have enough life insurance; and in Oregon, these numbers may be even higher. If you have loved ones who rely on you for financial stability, it is a very good idea to start reviewing life insurance policies and quotes as soon as possible
As a whole, Oregon is a relatively healthy state, and statistically speaking, residents are likely to live well into their retirement years. However, there are no guarantees in life, and accidents and unexpected serious illnesses can sometimes occur during the prime of life. If you have loved ones who depend on you financially or for care, it is very important that you think about how they would manage in your absence. Life insurance can provide crucial assistance to them.
In the unfortunate event that your life is cut short because of an illness or accident, a suitable life insurance policy can ensure financial safety for your family so that they can continue to maintain their standard of living, both immediately after your passing and well into the future.
If you are an Oregon resident who is still young and healthy, you probably do not see a pressing need for life insurance; however, it is during this time in your life that life insurance policies can be purchased at their most affordable rates. If you wait until you are much older or after you have been diagnosed with a serious disease, you will likely find that a good policy is unaffordable. This is why, when it comes to life insurance, procrastination is never a good idea.
If you are considering life insurance for the first time, the decision about what type of policy to purchase can be a difficult one. There are a number of different types of life insurance policies, but they all fall under two main categories: term life insurance and permanent life insurance.
Many people have very a strong opinion about which is the better choice, so you are likely to hear strong arguments for and against each policy type. Keep in mind that there are really no right or wrong answers when it comes to which type is best for you and your family. An insurance professional can help you make your choice based on your current financial situation and life insurance goals, but in the end, the decision depends on which appeals to you the most.
Term policies are designed to provide you with coverage for a given number of years, which is referred to as a term. Terms are usually between five to thirty years, but insurance companies can be flexible. Once the term is over, the policy expires and is no longer in force.
The advantage of having this sort of policy is that it enables you to purchase a high amount of coverage at a very low and affordable rate. If you have young children and want to be able to provide for their futures, including a college education, you will need to have a large insurance policy, and this is the best way to get that coverage at a very low rate. The idea behind these policies is that you will have a lot of coverage during the years that you need it most. Many people buy a term policy with the expectation that once it expires, their dependents will be financially independent.
An obvious drawback to these policies, however, is that they do expire. If your life situation changes, such as if you are raising your grandchildren, you may need to purchase a second, far more expensive policy to ensure that they are covered. Additionally, these policies have no cash value. If you close the account early or it expires, you will have nothing to show for it.
Permanent life insurance, which includes the popular whole life and universal life insurance policies, does not expire. This type of policy will stay in effect for as long as you continue to make payments on your premiums. Permanent life insurance is best purchased while you are young so that you can lock in at a low rate and retain that rate for the rest of your life.
The advantage of this sort of policy is that it can serve as an investment vehicle because it accumulates a cash value over time. This money can be withdrawn or borrowed against at any time if the need arises. You also have the advantage of owning a policy that will not expire or go up in price, even if you are diagnosed with a life-threatening illness.
The drawback to permanent life insurance is that is significantly more expensive than term life. This means that purchasing a policy that is large enough to provide for your family well into the future may be unaffordable.
Life insurance companies calculate their rates using several different factors. When you call to request a quote, you may be given an approximate rate, based on your age, gender, the policy type and amount of coverage you are seeking, but many companies will not give you an actual, final rate until you have completed a health-history questionnaire and have submitted to a physical exam administered by a representative of the company.
There are several factors that go into calculating life insurance rates, but the four most significant ones are:
Tobacco users are typically quoted significantly higher rates than non-users because their health and longevity are compromised by these products. Blood-work during your physical exam can detect nicotine in your system; also, a smoking-related death can nullify your policy if you are listed as a non-smoker. Therefore, it is a very bad idea to indicate that you are a non-smoker if, in fact, that is untrue.
You may find it difficult to decide which type of life insurance policy is best for you and your family, or how much coverage is enough. This is why you can benefit from working with a knowledgeable, independent insurance agent in the Trusted Choice® network. These agents, many of whom can be found throughout Oregon, can answer your insurance-related questions and can also provide you with a variety of policies and quotes for your review.
For more information, contact a Trusted Choice agent with an office in Oregon and you can start comparing life insurance policies and quotes in no time.