Are you and your family covered in the event of an untimely death? Will the survivor be able to cover the cost of immediate final expenses, ongoing mortgage and living expenses, and future college education expenses? Will your family be able to remain in the same home, living the same lifestyle, without your income?
If you answered "no" to these questions then we need to discuss a life insurance policy that works for you. There are different types of policies, different costs, and different combinations that are available for you to purchase to protect you and your family. Some are temporary insurance and others are permanent and allow you to accumulate cash savings.
Determining the amount you need
- How much does the survivor need to replace your income to cover living expenses? Are their monies available for final expenses? Are there educational fund monies needed? Are there estate taxes that need to be covered? Do you have anyone to whom you would like to leave some monies?
- Consider any assets or life insurance you currently have at work, social security, pensions, savings, real estate, investments, and personal property. These amounts are subtracted from your total needs to show any deficit or amount you remaining that you need to cover with a new life insurance policy.
- Use our Life Calculator to determine the total amount of life insurance you need. This is paid as the death benefit to the beneficiary of your choice.
Step Two: Determining the type of insurance you need
Term Insurance - The most cost effective method of insuring many short-term (temporary) needs. This type generally offers the larger death benefit amounts for lower cost, but does not build any cash value. It pays a death benefit only if you die within the specified term. The cost generally remains the same for the entire period and is available for 10,15, 20 and 30 years. Some policies contain a conversion option if you want a permanent policy in the future.
Permanent Insurance - Designed to cover needs that last for your entire life. Whole Life and Universal Life permanent policies are suited to meet the final expenses, estate taxes, or retirement savings protection goals you have. They cover your entire life while accruing a cash value or savings. Premiums for these policies are generally higher, but accrue as cash value that may be used in several ways. You can take a loan against the value but if not paid back it will be taken from the final death benefit or cash value amount if you chose to stop making payments and withdrawal the account value. You can also use cash value to keep insurance for a limited time or buy a reduced amount without having to pay additional premiums. The more you pay in the earlier years, the more cash value you build in the account.
Step Three: Contacting KGS Insurance
Contact us to discuss the policy or mix of policy products that best suit you and your family. Complete an application (and medical exam if required) to determine the best rating class for which you qualify. Then rest with peace of mind that your family is well protected!