1. What is life insurance?
Life insurance when brought to its most basic element is simply an agreement or contract between you and an insurance company. That agreement states that if you should die while the contract is in force then your named beneficiary (the person or person’s you chose to receive the benefit when you are gone) will receive a sum of money you have chosen in advance usually referred to as the “death benefit”. Some types of life insurance also give the policy owner the right to “borrow” a portion of the cash value (a build up of excess premium) within a policy, or to receive an accelerated death benefit (an advance payment on the death benefit) if you become terminally ill or require confinement in a long term care facility.
2. Why should I buy life insurance?
For most, the greatest reason is to make sure your family and or friends left behind will have adequate money to continue life with out dramatic or devastating consequences. Special attention should be paid if you have: young children, a non working spouse, a family member with a disability or elderly parents in need.
It has been said that life insurance is the foundation for the ( family planning ) to come over your life. It’s similar to building a house, think of the walls of your house as your structural pieces that hold up your retirement roof.
Your roof would be your Retirement – 401k, IRA’s, 403b, Mutual Funds, Annuities and Investment Accounts etc.
Your Foundation for all your family planning is your Life Insurance.
You see, you can have these great walls built to perfection and you can have an excellent roof designed to last, but if you build your house on a bad foundation it will come crumbling down when the weather changes. A premature death will have a devastating effect on both your existing walls and the ability to even place a roof.
You also can create an inheritance for your heirs: Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.
Pay federal “death” taxes and state “death” taxes: Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance.
Make significant charitable contributions: By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.
Create a source of savings: Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people make paying their life insurance premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan.
3. Why should I buy my life insurance from Insurance Quote San Diego?
We are a local San Diego company with top rated carriers designed to give you the maximum coverage at the least price. With us, you will not be just another sale like the large brokerage houses. Either the managing agent Chris Wilson or one of our top customer service representatives will be there to help with your changing needs.
Your insurance search will be accurate and un-biased and while we constantly monitor up to 100 companies for price, options and reputation, many times only the top 7-12 companies will make it through to the Iquotesd search network.
You can compare life insurance quotes at one web site without wasting time with several agents or other sites that only quote a few companies. Our clients typically save from 30% up to 70% on their life insurance rates.
4. How much life insurance do I need?
There are many ways to approach this one and they will all give different answers.
Some will have you add up the costs to complete your needs for the future. For example, pay off the house and all debt and put all your children through Harvard and replace your current and future income and increases etc. And while I must admit, I would like to be on the receiving end of such a sum of money; it really is way out of reality for most. Your insurance goal first and foremost needs to be that it is a premium you can afford; otherwise you will lapse or cancel it and know one receives anything. Obviously the amount of benefit is the second most important thing. It still needs to be a balanced approach. You can mix and match a larger 15 year plan with a smaller long term plan to try and keep the costs in your budget. Also you can start with something as easy as paying off the mortgage and then come back in a year or two and add more coverage. In the end, any coverage is better than NO coverage.
One thing to remember, the beneficiary of the insurance never says that’s too much money please take it back. So a good rule of thumb is to get an amount of coverage that puts a small pinch on your monthly budget today as it feels less expensive later as your income climbs and it also rarely gets cheaper than at your current age and health.
5. What are the main types of life insurance?
There are two major types of life insurance – term and whole life. Whole life is sometimes called permanent life insurance, and it encompasses several subcategories, including traditional whole life, universal life, variable life and variable universal life.
Term: Term Insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from 1 to 30 years. Many term policies have no other benefit provisions.
Whole Life/Permanent: Whole life or permanent insurance pays a death benefit whenever you die – even if you live to 100! There are three major types of whole life or permanent life insurance – traditional whole life, universal life, and index universal life, and there are variations within each type.
6. As I age, will Term insurance rates go up?
Once you have coverage set for a fixed term, your term insurance rates will not increase for the duration of the term. The premium – and benefit amount – will remain the same. Only at the end of the term period specified in your policy – 10, 15, 20 or 30 years – will your life insurance rate potentially increase.
However, as you age the likelihood of mortality increases. Applying for coverage at an older age may result in higher term insurance rates. You may also encounter a lower likelihood of approval. The reason is simple – a 28-year-old is considered less likely to die than a 65-year-old. That’s why older individuals pay more for life insurance. It is therefore advisable that you try to get the policy at a younger age.
Term life insurance premium rates are locked in for the entire term you choose up front. Younger people can often get a significant amount of coverage for up to 30 years at an affordable rate. The low rate stays the same for the duration of the term, even if their health changes or declines.
7. Is there a money back guarantee?
Yes. If you change your mind during the application process, you’ll receive a full refund, no questions asked. This guarantee is valid up to 30 full days after your policy is delivered to you.
8. Is there a way to choose what type of insurance to buy?
You might consider Term if:
Your need for insurance is more based around a specific duration other than your entire life. Your home for example may be on a 30 year mortgage which term would fit well for as it can be designed for 30 years and then the home would be paid off if something were to happen to you premature.
You might consider permanent life insurance if:
You need life insurance for as long as you live. A permanent policy pays a death benefit whether you die tomorrow or live to be 100.
You want to accumulate a savings that will grow on a tax-deferred basis and could be a source of borrowed funds for a variety of purposes. The savings element can be used to pay premiums to keep the life insurance in force if you can’t pay them otherwise, or it can be used for any other purpose you choose. You can borrow these funds even if your credit is shaky. The death benefit is collateral for the loan, and if you die before it’s repaid, the insurance company collects what is due the company before determining what goes to your beneficiary.
Keep in mind that premiums for permanent policies are generally higher than for term insurance. However, the premium in a permanent policy remains the same no matter how old you are, while term can go up substantially every time you renew it.
9. Will I find the same product for less through another quote service, agent or broker?
No. Since the insurance policy prices are set by the companies and not agents, these term insurance rates are fixed for a policy with all the same features. If you compare life insurance quotes and find a plan with a different price than one you’ve been quoted, you may be looking at a different risk class. That’s why it’s important that you answer all questions honestly when asked by your Insurance Quote San Diego Representative or on the quote engine.
10. How do I get a life insurance quote?
At Insurance Quote San Diego we make getting a quote simple. All you have to do is:
Call us at: 1-858-707-4690
Toll Free at: 1-888-354-3364
Email at: firstname.lastname@example.org
We have friendly licensed agents who will be happy to discuss your no obligation quotes and or provide you with any information required to assist you in the decision making process like rates, options or which carrier. To Request a life insurance quote online now click “Free Quotes” from the home page.