What Is Term Life Insurance And Is it Right For Me?

With all the types of life insurance policies available on the market, choosing which one is right for you can be a difficult decision.  Term life insurance is just one of the many policy types available to you, but knowing whether it is the best choice depends on a few factors.  Here are some facts about what term life insurance is and whether it is the type of life insurance you should have.

What Is Term Life Insurance?

Term life insurance is a policy in which the purchaser is covered for a predetermined amount of money which will be paid out to their designated beneficiary when they pass away.  The policy is only valid within a specified term, usually a set number of years, or until either the individual covered or the beneficiary reaches a certain age.  It is the most inexpensive way to purchase life insurance and usually offers the largest payout.  This is because it has an expiry date.  If you pass away after the term expires the insurance company owes no money to your beneficiary.

How Does Term Life Insurance Work?

With a term life insurance policy you select a term for which you want the policy to be valid; this can range from one to 30 years, with common term policies in the 10 and 20 year range.  The premiums you pay will not increase for the life of the policy.  The premium cost is based on a number of factors such as your age, current health, and other health-related risk factors.  In general, the younger you are and the healthier you are, the lower your premiums will be.

Is Term Life Insurance Right For Me?

There are differing viewpoints about which type of insurance is best, depending on your personal circumstances, but overall term life insurance is often a good idea.  While the idea of having your policy expire with no payout may sound like a waste, especially when there are policies that do offer a return, in most cases if you simply invest the difference in other more secure investments your return in the long term will yield higher results.  Also, if you are still a number of years from retirement your premiums will usually to be very low and your return for investing in this type of life insurance-investment strategy is likely to pay off nicely.

Overall, the younger you are, the better term life insurance is for you.  At any age it can be the best choice, but for those you are looking to get protection for the first time, especially if you have a young family, a large mortgage, and a number of debts, this is an inexpensive way to ensure your loved ones are protected should the worst occur.

CSA Insurance Group has a team of dedicated specialists that can help you with your home, auto, life, and business insurance. Visit their website at www.csa-ig.com for more information or call them today at 419-335-AUTO (2886) or 1-866-844-9107.CSA Insurance Group serves all of Ohio.

 

What Is Covered In A Life Insurance Medical Exam?

Life insurance is a major purchase.  Finding a policy that not only provides you with the coverage you need to care for your family or loved ones, but is also affordable, is critical in making your decision.  So you have found the policy that seems to have all the feature you are looking for, and at the right price, but it requires a medical exam!  What should you expect from a life insurance medical exam and how can you prepare for it?

What Kind Of Medical Exam Should I Expect?

In general, a life insurance medical exam will try to get an overall picture of your health.  You can expect to be asked a series of questions about your medical history and the medical history of your family members.  You can also expect questions about your lifestyle that may affect your health such as drinking, smoking, and exercise habits.  In addition to a questionnaire you may also be required to have a routine physical that could include taking your weight, pulse, and blood pressure, as well as doing blood work and urinalysis.  It is a good idea to have the insurance company send the results to your doctor.  That way if you do have a health problem you did not know about your doctor will be informed of the results.  It can also give you a third party perspective if you were to fail the medical exam.

Why Do I Need To Take One?

Your insurance company may require you to take a medical exam to assist them in determining what premiums they should charge you.  They will compare the results of your medical exam to their longevity charts, which will give them an estimate of how long you are expected to live based on various criteria.  The premiums will be based not only on your medical exam, but also on other factors such as your age, gender, occupation, and credit score.

Are There Alternatives?

The policy that you select may require a medical exam.  There are, however, a number of policies on the market that do not require a medical exam, and many of these are offered to those who are older or who may be concerned about taking an exam in the first place due to existing health problems.

Overall, if you are in good shape, healthy, and young, taking a medical exam may give you access to a policy with a very low rate.  If, however, you are older or in poor health you may want to consider a policy that does not require it.

CSA Insurance Group has a team of dedicated specialists that can help you with your home, auto, life, and business insurance. Visit their website at www.csa-ig.com for more information or call them today at 419-335-AUTO (2886) or 1-866-844-9107.CSA Insurance Group serves all of Ohio.

 

Universal Life Insurance And Cash Accumulation Accounts

You have probably heard about people taking out a loan on their life insurance policy, but don’t really understand what that means.  How can you take out a loan on insurance?  The answer is simple: you can access a cash accumulation account that grows over time when you are paying the premiums on a Universal (whole or permanent) life insurance policy.  How does it work?  Let’s take a look at the basics.

Cash Accumulation Accounts

When you pay the premium on a Universal life insurance policy, part of what you are paying is the actual premium, or what is also called the cost of insurance.  This is the minimum amount that is required to keep the policy in force.  The remainder of the premium, usually a pre-determined amount, goes into a savings account where it earns interest and accumulates over time.  The longer you pay the premiums on the policy, the more money will add up in the account.  You can even choose to pay a higher monthly premium so that more money goes into the savings account.

Loans And Surrenders

There are two ways to access the money in your life insurance account.  One is a loan, and the other is a surrender or a withdrawal.  The main difference is whether or not you pay tax on the amount.  Because the money placed in a life insurance cash accumulation account is tax-deferred, you won’t pay any tax on it as income unless you take it out as a surrender.  When you take it as a loan, however, you don’t have to pay tax on it.  You do, however, have to pay it back to the cash accumulation account with interest.  If you withdraw money from the account as a surrender instead of a loan, there may be a surrender charge that you will have to pay to get the money out.  Bear in mind that if you should pass away without paying back the loan, the amount will be deducted from what is paid out to your beneficiaries.

How Do I Access The Money?

If you want to access the cash value of your policy, contact your insurance agent.  It’s a good idea to discuss the pros and cons of a surrender versus a loan before you make a decision.  Your agent can give you all the necessary details such as surrender charges and interest rates on the loan to help you choose the right option.

CSA Insurance Group has a team of dedicated specialists that can help you with your home, auto, life, and business insurance. Visit their website at www.csa-ig.com for more information or call them today at 419-335-AUTO (2886) or 1-866-844-9107.CSA Insurance Group serves all of Ohio.

Understanding The Different Types Of Life Insurance Policies

The number and different types of life insurance policies available on the market can be overwhelming and confusing to choose from, especially if you have never purchased a life insurance policy before.  Understanding what types of policies are available to you and what they can offer, even before beginning the search, can make it easier and less time consuming.  Here is some basic information about the types of life insurance policies that you can purchase, and how to select the one that is right for you.

Types Of Policies

There are two general categories of life insurance policies: temporary and permanent.  They both include coverage in the form of a payout to your chosen beneficiary in the event of your death, but the additional benefits these policies can offer you differ, namely from their investment possibilities to providing coverage for an inexpensive premium.

Temporary Life Insurance

The most common type of temporary life insurance policy is more commonly known as term life insurance.  This type of insurance offers you death benefit protection for the term of the policy, typically 10 or 25 years.  At the time the term expires, so does the policy, though many offer renewal options at an increased premium.  The benefit of term life insurance is that it offers maximum payout for the lowest premiums.  This is especially true the younger you are.

Permanent Life Insurance

Whereas there is really only one type of temporary insurance policy, there are a number of different options in the permanent life insurance market.

Whole Life Coverage—This includes guaranteed death benefits, guaranteed cash values, and the security of a fixed annual premium.

Universal Life Coverage—This option provides you with greater flexibility in both premiums and potential return.  It still offers both a payout in the form of life insurance coverage and the potential of a cash value to increase with the term of the policy.

Limited Pay—This is basically permanent and term life insurance combined in that you only pay premiums for a specific term; however, you still receive the death benefit after the term expires, though usually at a reduced rate.

Endowment—This type of policy, which is similar to annuities, acts more as an investment than does traditional life insurance.  The principal is protected and a payout is guaranteed, but the premiums are much higher than those of other types of life insurance.

CSA Insurance Group has a team of dedicated specialists that can help you with your home, auto, life, and business insurance. Visit their website at www.csa-ig.com for more information or call them today at 419-335-AUTO (2886) or 1-866-844-9107.CSA Insurance Group serves all of Ohio.

Tips For Choosing A Life Insurance Policy

If you don’t know where to start when it comes to shopping for a life insurance policy, you are not alone.  Life insurance can seem like a daunting task because it has such serious consequences.  You want to be sure you get the right policy and pay the right premiums, so get some help and consult an expert before you make a decision.

An Agent Can Help

Before you call an 800 number to get your life insurance policy through a television commercial, consider talking to an insurance agent.  Even if you do decide in the end to go with a policy somewhere else, you can get valuable information through the expertise offered by an agent.  They will help you to decide how much coverage you need and what type of policy is best.  They can explain to you all the rules and procedures involved in obtaining your policy.  If you don’t already have an agent, ask friends and family for a referral to someone they trust.

Possible Discounts

If you look for a life insurance policy with the same company that insures your home and car you may qualify for an additional discount on those policies.  Many large insurance companies offer multi-policy discounts for customers who take out more than one type of insurance policy with them.  Ask what you could potentially save on your auto and home—it might make it worth a slightly higher life insurance premium.

Getting Quotes

It’s always worthwhile to get numerous quotes on any major purchase you make.  Call around and get quotes from at least three different companies for comparison.  Be sure they are quoting the same policy limits as well as the same type of policy and term length if applicable.  Remember that quotes may not be entirely accurate—what may be discovered on your health screening could affect the true premium when the policy is issued.  If the premium amount is different from the quote, you will have an opportunity to change your mind and decline the policy.  Be sure to ask for detailed information on the reasons why the premium is different.

Especially if you are choosing a long term or Universal life insurance policy, you will want to be sure you have made the right decision.  You will be paying that premium for a long time, and changing to a new policy later could cost you a lot of money.  So be sure you are happy with the policy and the premium, because once you choose a policy it is best to stay with it for the long haul.

CSA Insurance Group has a team of dedicated specialists that can help you with your home, auto, life, and business insurance. Visit their website at www.csa-ig.com for more information or call them today at 419-335-AUTO (2886) or 1-866-844-9107.CSA Insurance Group serves all of Ohio.

 

 

 

The Two Main Types Of Life Insurance

When you start shopping for life insurance you will quickly discover that there are two main policy types.  These are Universal, sometimes referred to as Whole or Permanent life insurance, and Term.  There are some key differences between them, and each has pros and cons.  Understanding these two policy types will make it easier to select the one that’s right for you.

Universal Life Policies

These are also presented as whole or permanent life insurance policies.  This type of life insurance covers you as long as you live, or until you hit a predetermined age—usually around 99 years—in which case the policy will pay out.  In most cases, this policy will last until your death.  This type of policy is more expensive because the company expects that they will definitely pay out on it at some point, since it does not expire. As long as you continue to pay your premiums, this policy remains in force no matter what happens regarding your health.

A Universal policy also has the feature of a cash accumulation account, which allows you to save money in a tax-deferred account on which you will earn interest.  This account allows you to withdraw funds either as a loan or as a surrender.  When the policy pays out, all funds in the accumulation account will be paid to the beneficiaries as well.

Term Life Policies

A term life policy mainly differs from a Universal policy in that it expires.  This type of policy is in force for a set number of years, and then the coverage ends.  Because the company has a lower risk of paying out on this type of policy, the premiums are generally more affordable, allowing you to take out a higher amount of coverage.  Common terms for these policies are 10, 20, and 30 years, although different companies may offer numbers in between.  The longer the term, the higher the premium is likely to be due to the higher risk of death occurring during that time period.

Term policies do not offer cash accumulation accounts.  At the end of the term, the premiums you have paid do not come back to you in any way.  If you want to take out a new term policy after the term ends, your age and any changes in your health may result in a higher premium or even a denial.

Both of these types of life insurance have their place and are useful in different situations.  The best type of policy for you depends on how much coverage you need, how long you need the coverage, and what you can afford to pay for your premiums.  In many cases, a combination of two policies, one from each type, offers the best coverage.

CSA Insurance Group has a team of dedicated specialists that can help you with your home, auto, life, and business insurance. Visit their website at www.csa-ig.com for more information or call them today at 419-335-AUTO (2886) or 1-866-844-9107.CSA Insurance Group serves all of Ohio.

Should You Buy Life Insurance For Your Child?

Life insurance for a child may sound like a strange concept, and one that is even disturbing to many people.  But the purpose of taking out a life insurance policy on a child is not a morbid expectation of an early passing.  There are some very good reasons why taking out a life insurance policy for your child early in life is a good idea.

The Premiums Stay Low

When your child is young and healthy they will qualify for the best possible life insurance rates, and if you take out a Universal life policy those premiums won’t change as the child ages.  Once the child reaches the age of majority, they can take over paying the premiums and continue to have the policy available as they grow older, with no increase in premiums.  Even if they develop health problems later in life that might prevent them from qualifying for a life insurance policy, the existing one can’t be taken away.  Your child will have a life insurance policy that is good for a lifetime no matter what happens.

Cash Starts Accumulating

The sooner you start the policy, the sooner cash will start accumulate in the account.  This can serve as a savings account that your child can contribute to as they grow older, or that they can draw on whenever it might be needed.  By the time your child reaches the age of 18, a cash accumulation account started at birth can contain a sizeable amount of money.

If The Worst Should Happen

No parent wants to think about it, but if a tragedy should occur, a life insurance policy can offer you the time that you need away from work to deal with the emotional and mental wellbeing of yourself and your family.  While this isn’t the main reason to take out a life insurance policy for your child, in the event of the worst case scenario, you will be grateful for the extra help.

If you are considering a life insurance policy for your child, don’t be dissuaded by the feeling that it is morbid or frightening to think about.  The main reasons for taking out the policy are not morbid, they are simply smart planning and thinking ahead for your child’s future.

CSA Insurance Group has a team of dedicated specialists that can help you with your home, auto, life, and business insurance. Visit their website at www.csa-ig.com for more information or call them today at 419-335-AUTO (2886) or 1-866-844-9107.CSA Insurance Group serves all of Ohio.