Posts Tagged ‘application process’

Life Insurance

Friday, May 21st, 2010

Welcome to the life insurance area of HatcherKimrey.com. This section covers the basics of life insurance and also lets you get an immediate quote on term life insurance and start the application process online. You can also get a quote on other forms of life insurance by completing and submitting the appropriate requests.generation-family

  • Term Life Quote
  • Permanent Life Quote
  • Universal Life Quote

At Hatcher Kimrey Insurance we know that life insurance is an essential part of financial planning.  Most people buy life insurance to replace income that would be lost with the death of a wage earner.  The cash provided from a life insurance policy can help your family pay any outstanding debt when you die.  A key feature of life insurance is that no income tax is due on the proceeds paid to the beneficiaries. 


Before buying life insurance, you should determine how much protection you should have.  This protection should include a sufficient amount for:


  • Any immediate needs at your death, such as final illness expenses, burial costs and estate taxes.
  • Funds for a readjustment period for you family
  • Ongoing financial needs, such as monthly bills, college tuition or retirement


One rule of thumb used by most insurance professionals is to buy life insurance that is equal to five to seven times your gross annual income.


Buying life insurance is different than any other purchase.  You are providing the future financial security of your family that only life insurance can provide.  Choosing a life insurance product is an important and complicated decision.  It is important that you understand your needs and your options.


Permanent Life

 

Permanent Life insurance provides lifelong protection.  These policies are designed and priced for you to keep for “the long haul”.  Most permanent policies have a feature known as “cash value” or “cash surrender value”.  This cash value can be borrowed or used to make premium payments.  Keep in mind that the cash value is not the same as the policy face amount. 


There are many different types of permanent life insurance.  The major ones are described below:


Whole Life or Ordinary Life


This is the most common type of permanent life insurance.  It is life insurance that is kept in force for your lifetime as long as the premiums are paid.  All whole life policies build up cash value.  Whole life policies also generate dividends that can be used to lower premiums, purchase more insurance or buy term insurance.


Universal or Adjustable Life

This product provides more flexibility.  After the initial payment, premiums can be paid at any time in virtually any amount.  The death benefit can be easily increased or decreased.


Variable Life

This type of permanent policy provides death benefits and cash values that vary based on the performance of a portfolio of investments selected by the insured.  The cash value is not guaranteed.  The insured assumes the risk of the value of the benefits based on the performance of the designated investments.


The advantages of permanent life insurance are the guaranteed protection for your lifetime or a specific age, premium costs are fixed, and cash values are accumulated.  The disadvantage is the cost of the premium in order to buy enough protection.


Term Life Insurance

 

Term Insurance provides protection for a specific period of time.  The benefit is paid if your death occurs during the term.  Level term insurance products are the most popular plans due to the low premium.  The level term can be 5 years to 30 years.  The premium and the death benefit will stay level during the term of the policy. 


Consult with one of our professionals at Hatcher Kimrey Insurance to help you with your financial planning.  Remember… We’re always here for you!