What is Life Insurance?
Life insurance is a contract between a person (the insured policy holder) and an insurance carrier (the insurer)
In this contract, the insurance company provides a payment, called a death benefit, to a person or people called the beneficiaries, when the policy holder passes away. In exchange for providing the death benefit, the policyholder makes payments, called premiums, to the insurance company while they are still alive.
Sounds simple enough right? Now just because it’s simple, doesn’t mean this decision should be taken lightly. Life insurance provides affordable financial protection and peace of mind to those who rely on you. It can help them pay for the mortgage, grocery bills, utility bills, funeral arrangements, a college fund for your children and much more! It’s important to ensure you make the right decisions when selecting what life insurance policy to buy. We’ll help guide you through making each of these decisions so that those that rely on you have the financial protection they deserve!
What are the Different Types of Life Insurance?
There are three primary types:
Term Life Insurance
This is the simplest and most common type of life insurance that provides protection for a specified number of years. You can choose 10 year, 20 year, 30 year and even up to 40 year terms during which you’re protected. You can start this type of policy when you need it and have the term end once you no longer have the same financial obligations such as: replacing your income, raising children, paying off your mortgage or college tuition. It is by far the least expensive choice for life insurance and can provide peace of mind during these stages of life!
Whole Life Insurance
This is a much more complicated type of life insurance that is permanent and does not expire after after a certain number of years. These policies can include options to accumulate cash value that grows over time and you can borrow from while you are still alive However, these benefits come at a much higher cost and often do not have the benefits to justify this price increase.
Universal Life Insurance
This is another type of life insurance that does not expire but can be even more complex than whole life insurance. It has additional options like flexible premiums and even a flexible death benefit. Some universal life policies also have cash value that can be tied to investments in the market. However, these policies also come with additional fees and a much higher cost.
Do I Need Life Insurance?
The better questions to ask are: Does anyone rely on me or my income? Would those who rely on me not be able to afford necessary expenses if I passed away? If the answer is yes, you probably should have life insurance.
How Much Coverage Do I Need?
The amount of coverage you need can depend on a variety of factors pertaining to your unique situation. The optimal amount of coverage will take into account all of your financial obligations, everyone who relies on you and any income that would need to be replaced. Many experts try and throw out a number such as 10 or 15x your income, but this is not a good rule of thumb and it does not take your specific financial circumstances into account.
Should I Get Term or Permanent Life Insurance?
This is going to depend on your goals:
Term Life Insurance
Are you looking for something that will last long enough to ensure those who rely on you aren’t hurt by your financial obligations? Term life insurance is good for families who would not be able to afford the necessary expenses if you were to pass away. Most people buy term policies until their children are financially self-sufficient or until they reach retirement age.
Permanent Life Insurance
Are you looking for something that will definitely pay out when that time comes? Permanent life insurance includes whole and universal and is usually for people who want to leave an inheritance to their loved ones, cover final expenses, burial costs or help pay for estate taxes when they die.
How Much Does Life Insurance Cost?
This depends on a number of different factors:
The Life Insurance Policy Details:
The details include what type of life insurance you are purchasing, how long the policy will last and how much coverage you are getting. The longer the term and the more coverage you need, the higher the cost of the policy
Every year that you wait to purchase a policy, the more it will cost when you actually get started. This rate can go up as much as 8-10% per year that you wait.
Life Insurance Rates are all about statistics. If you are in great health, the lower the statistical chance that you will pass away and therefore a lower rate!
The average mortality age for men is 77 while the average age for women is 81. Therefore men are more likely to pay more for life insurance
If you engage in hazardous activities such as scuba diving, sky diving, or piloting aircraft, your life insurance rates may be higher
Here is an example of what $1,000,000 in coverage would cost for a healthy 35 year old male:
Here is an example of what $1,000,000 in coverage would cost for a healthy 35 year old female:
Can I Qualify For Life Insurance?
Almost anyone can qualify for some type of life insurance. Even people with serious medical complications or impairments!
Who Can Be My Beneficiary?
This one is super simple. Just ask yourself, who relies on me and my income. Your beneficiary can be your spouse, partner, children, business associate or even your estate and they can use this money for anything they need, such as:
Can I have more than one beneficiary?
Absolutely! Our insurance experts can help you decide who will get what percentage of your insurance benefit. In fact, you can even have what’s called a contingent beneficiary who will receive the life insurance policy proceeds if your beneficiary passes away.
How Can I Get The Right Life Insurance?
Getting the right life insurance can generally take between 4-6 weeks and can be completed in these simple steps:
Get a Free Life Insurance Quote:
It’s best to shop and compare rates from a variety of different carriers. Just because one carrier may be the least expensive in one situation, does not mean they will be the best for you and your family. Metcalf Financial can help you compare quotes with up to 80+ different carriers.
Pick Which Policy Works for You:
There are over 46 different variations in life insurance policies and most of those will not work for your unique situation. We are here to help and can guide you to the right financial protection!
Complete The Application:
Every life insurance policy has an application involving various health and lifestyle questions. Often times, these applications can be very difficult to navigate. Luckily, we take care of this part for you with a quick 10 minute phone call!
Complete a Phone Interview:
Some carriers require this step and it involves you simply answering some more detailed health and lifestyle questions with a licensed agent or answering some questions about your application.
Complete a Medical Exam:
Most carriers require this step. Life insurance exams are similar to a basic physical in which a nurse can come to your home or work, on your schedule, and complete a height/weight check, blood pressure check, urine collection, mouth swab or possibly a blood test. This is at absolutely no cost to you and is paid for entirely by the insurance company. However, at Metcalf Financial we have multiple options where you can completely skip this step with a Non-Medical Life Insurance Policy.
Wait For The Policy To Be Approved:
After you have completed your medical exam, go back to your life, enjoy yourself. We take care of everything else and keep you updated weekly about the process!
Sign Your Application:
Once your policy has been approved, all you have to do is sign and submit your first premium payment. Here at Metcalf Financial we aren’t in the dark ages like many insurance agencies. All signatures can be taken care of directly from your smartphone!
The Metcalf Financial Difference
There are 2 key factors to shopping for a life insurance policy to protect your family:
- Finding the Best Price/Best Rate
- Finding the Best Carrier (Usually a company that is A/A+ Rated with A.M. Best)
These two factors usually come down to who you are choosing as your agent or advisor.
How Do I Find the Best Price and The Best Carrier?
There are 3 types of insurance agents:
These types of insurance producers can only offer options from one company, at one price and it may not even be the best option for your family, but they won’t tell you that. You’ll see many of these types of companies on commercials and around town as a local storefront insurance agency. However, this is simply not ethical. Why would you want to work with an agent who is trying to sell you a worse product for a higher price just because they have a big company name?
These types of agents usually can provide you with options from multiple different carriers so you may be able to get a better rate than the Captive guy. However, they usually only have access to about 5 different carriers and will need you to come all the way down to their office, talk with them for an hour and come back to actually sign an application, ON PAPER. How archaic!
Fully Digital Insurance Brokerage:
This is where we come in. At Metcalf Financial, we are a fully digital insurance brokerage meaning you can complete the life insurance process completely online or over the phone in about 15 minutes.
- No need to drive all the way to someone’s office.
- The ease and convenience of working with a fully digital insurance broker
- You control your policy on your terms.
Unlike other insurance agencies, you aren’t just a number to us. You and your family’s protection is our First Priority. We have seen so many people become a distant third priority behind the insurance company and the insurance agency. That’s not the way it should be! We are committed to putting our customers FIRST, ALWAYS!
We have relationships with 80+ different A/A+ rated carriers
What does all this mean? You ALWAYS get the BEST CARRIER at the absolute LOWEST RATE, ON YOUR TERMS, GUARANTEED!!
Our insurance experts will hold your hand from A-Z as we guide you to the right insurance protection for your family. Get an instant quote or give us a call at (928) 514-6150!